Tips for getting a mortgage

You’ll probably want to get the best mortgage deal possible, as it’s likely to be your biggest financial investment. There are many things you can do in order to increase your chances of getting your mortgage accepted once you have found your dream home. For Estate Agents Cheltenham, visit http://www.meandyouestateagents.co.uk

You should know the factors that will affect your eligibility if you are considering a mortgage. Credit score, debts, self-employment status, the length of your employment, and your deposit size are all factors that can affect your eligibility.

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1. Credit score is important

Obtain a copy of the credit report before applying for a home loan. Credit reference agencies, such as Experian and Equifax, hold this information. This will help you understand what lenders look at when they examine your application.

2. Start with your own sums

Before applying for a loan, sit down and create a budget. Be sure that you have enough money to pay for the purchase price. It’s important to save enough to cover the costs of buying a home.

The monthly mortgage payment will be determined by the amount you wish to borrow, how long it is over and the rate of interest charged.

3. You’ll do better in the same position

Before they will give you a loan, most lenders want to know that you have been working for your employer for some time. If you are thinking about changing jobs, you should wait until you have a mortgage. It’s best to wait at least three or six months to apply for a new job after you have held your current one.

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The greater the amount of money you have saved to use as a down payment, the more mortgages you will be able to choose from.

4. Debts don’t help

You don’t want to show a prospective lender that you have outstanding credit card debt or loans.

Reduce any debts that you may have before applying for a mortgage. You will be able to demonstrate your ability to manage money wisely, which increases the likelihood of a successful mortgage application.

5. Proof of income is required

You’ll need to show your mortgage lender proof of your income, so you will probably require a form P60. This form is sent to you by your employer every year. It shows your salary and the amount of tax deducted.

The lender will also ask for your bank statements and payslips from the past three months. The lender will be able to see how much money you are bringing in and your personal expenses.