If you’re thinking about how to get your first mortgage to buy a home, you should be aware of the different factors that could affect your eligibility. These include your credit score, length of time in your current job, current debts, whether you’re self-employed, and the size of your deposit. Follow these tips to get the mortgage you want.
Your Credit Score Matters
Before you apply for a mortgage, get a copy of your credit report. This is held by credit reference agencies, like Experian or Equifax. This will let you see what lenders can see when they look into your application.
If your credit rating doesn’t look too good, there are simple ways to improve it. Make sure you’re on the electoral roll and close down any credit card accounts that you aren’t using anymore.
Start With Your Own Sums
Sit down and work out what your budget is before you start applying for mortgages. You will need to be sure that you can borrow enough to cover the purchase of the property and that you will have enough money left over to cover all the other costs and fees that come with buying a home. A mortgage broker, like Avail Mortgages, could help you find a mortgage that fits your budget.
Monthly mortgage repayments will depend on how much you want to borrow, over how long, and the interest rate charged.
You’ll Be Better Off In The Same Job
Most lenders will want to see that you have been with your current employer for a decent length of time before they will agree to give you a mortgage. If you’re thinking of making a job change anytime soon, it’s a better idea to sit tight until after you have your mortgage in place. Usually, you want to have been in your job for at least three to six months before you apply for a mortgage.
If you have recently changed your job, don’t worry. It doesn’t have to be a problem, but if you are still in a probationary period, it is a good idea to double-check how your lender will feel about that and whether or not that will be happy to lend before it finishes. Even in this case, there should be lenders out there willing to consider the situation.
Debts Don’t Help
If you are applying for a mortgage, remember that the absolute late thing any prospective lender is going to want to see is that you owe a lot of money on credit cards or that you have a lot of outstanding loans.
Before you apply for a mortgage, put some time into trying to reducing any debts that you currently have. The more you can lower them, the more this will show that you are able to manage your money responsibly, which will mean that your application will have a better chance of being accepted. It will also mean that you will potentially be able to borrow more when it comes to a lender’s affordability calculations.
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