How to Help Your Chances of Getting a Mortgage
Getting a mortgage isn’t as easy as some people make it look. A lot of preparation is involved, and you need certain things in place depending on the size of the mortgage you’re going to ask for and other factors. This post will help you to improve your chances of getting a mortgage, so you can settle down and live happily ever after with little stress involved:
Know That Not All Lenders Will Want You
Not all lenders are going to want you, even if you believe that you’re an ideal candidate. Why? Because all lenders have their own set of ideals that they adhere to. If you fit into a particular set of ideals, you’ll be accepted quickly. If you fall somewhere in the middle, you could go either way. The money you’ve saved, your mortgage amount, and credit score are just a few of the things that will be taken into account. However, there are various schemes available if you’re a first time buyer or are unable to save up a full deposit.
Check and Improve Your Credit Score
One big thing you must do before applying for a mortgage, is to check and improve your credit score where possible. You can get your credit score for free with one of the major companies, like Experian. Double check that there are no mistakes on your file, as this can happen. Once you’ve sorted those out, make sure you have no outstanding debts or bills. The more your credit score gets pulled, the worse it can get, so be careful!
Disassociate Yourself With People Affecting Your Score
If you’ve ever had joint accounts with a partner or housemate, even if you’re not with them anymore, they could affect your credit score. If they have any unpaid bills and debts, it could reflect badly in you. You need to get in touch with the banks and companies you’ve had joint accounts with, and ask to be ‘disassociated’ from the person or people affecting you.
Be Careful With Available Credit
If you have available credit, you need to be careful with how you use it. You shouldn’t have too much available credit as lenders will think you could get into debt by spending it all. You also shouldn’t get too close to your limit, as it looks like you may be having trouble with your finances.
Close Accounts You Don’t Use
If you have an account that you don’t use, the best thing you can do is close it. Remember to contact the bank to do this for you, as simply getting rid of your card won’t do it.
Always Pay Your Bills
Paying your bills on time is crucial to getting accepted for a mortgage. Just one missed payment could be the difference between getting a home and being rejected. Unpaid bills affect your credit score, and will stay on your account for around 6 years.
There are other things you can do to increase your chances too, such as cutting back on your spending and making the effort to save up a ‘cash cushion’. This makes it look as if you’re on top of your finances!
