Applying for a mortgage can be daunting, how do you know what documents you need? Or how do you apply for a mortgage? We have put together a useful guide on how to get a mortgage. We have researched into this and found some tips that could help you if you are looking for a mortgage or are thinking about it in the future.
Step one – Pay off your debts
If you have debts such as overdrafts, credit cards, bank loans or store cards it is best to clear all of the debt you have.
When you are being assessed for a mortgage, lenders will take every outgoing you pay into account to see if you can afford to pay a mortgage based on your income. Mortgage lenders see applicants who have no debt as low-risk applicants.
Step two – Time to save
Once any debts you had are all paid off it is time to save as much as you can. As it stands 10% of the property value is the usual amount needed for a deposit.
Make yourself a plan to see how much you can realistically afford to save. If you can save at least 20% for a deposit you will be able to access cheaper mortgage deals.
Step three – Keep a record
Now a deposit has been saved you will now start to think about applying for a mortgage, be sure to keep all bank statements and pay slips. Lenders will want to see how you manage your money.
Step four – Credit check
It is a good idea to have a copy of your credit report to check your credit score and to make sure there are no errors on the report that could count against you.
Step five – Research Mortgage deals
Before you apply for a mortgage make you sure you have chosen the best deal for you and how much you can afford to pay.
Speaking to a mortgage advisor or mortgage broker will ensure you have applied for the best deal that suits your circumstances. They will be able to advise you on the most competitive options that are out there.
Step seven – Enjoy your new home
Once the hard work is complete you can now enjoy your new home!