If you have decided to take the plunge and apply for a mortgage, there are several factors you must consider beforehand. As well as proving you are eligible, you must also ensure you are ready and willing to make a life-changing financial decision. Continue reading to find out how to prepare for your mortgage application.
Organise Your Paperwork
Before you apply for a mortgage, you must organise your paperwork ahead of time. This includes any identifying documents as well as proof of income. By failing to organise your paperwork in a timely manner, you may struggle to find a mortgage provider willing to work with you or end up failing at the first hurdle by encountering refusal after refusal. By sending your paperwork in one batch, you can speed up the entire process from start to finish and prevent any frustrating setbacks from delaying your progress.
Register On The Electoral Roll
This may sound like an unrelated point, but by registering on the electoral roll, you can end up streamlining your mortgage application from the very onset. This is because providers tend to rely on the electoral roll to prove the information you have provided is correct and up to date. In addition, registering on the electoral roll can also boost your credit score and improve your chances of being accepted for a mortgage the first time.
Pay Off Any Outstanding Debts
Before you apply for a mortgage, you must ensure you have paid off any outstanding debts several months in advance. This includes any missed credit card payments or car finance fees. It may also benefit you to steer clear of your overdraft in the months leading up to applying for a mortgage with this often the first thing providers will question you about. There is no universal timeframe, but most providers will refuse your application if you have been in your overdraft in the past three months.
Wait After Applying For Credit
If you have recently applied for credit, you must wait before applying for a mortgage. This is because providers will demand to see proof that you can not only pay if off on time but in full. This is especially important for payday loans with the majority of providers downright refusing to offer you a mortgage if you have taken out a payday loan in the past 12 months alone.
Ensure Your Finances Are Up To Scratch
As well as organising your paperwork, registering on the electoral roll, paying off any outstanding debts, and waiting after applying for credit, you must also ensure your finances are up to scratch. For example, if you have only started saving in the past year, it may benefit you to wait until you have accumulated enough savings for a deposit. If you have been saving since you were in college or university, on the other hand, it may be time to begin the process of applying for a mortgage.
If you require help or guidance with your mortgage application or are just looking for a helping hand, get in touch with our team of experts today to find out everything there is to know about the process of applying for a mortgage as a first-time buyer or experienced homeowner.
