Getting a mortgage is always a big struggle. People are surrounded by countless doubts and are anxious about their approval chances. If you are also planning to invest in a property and looking for a mortgage maybe you are on the same boat. Surrender is not the only option if you face any problem; after all, some ways can help you maximise your chances of getting a mortgage.
Here are 7 promising ways that can help you attain funds for your significant purchase.
- Reduce your total debt
Your monthly instalment on personal loans, car loans, credit cards etc. may create a prominent figure of total debt. This reduces your creditworthiness for the mortgage. To avoid rejection of your application, an improvement in the debt-to-income ratio is necessary. Either make significant part payments or pay off some of your loans and dues. Keep the particular focus on high-interest rate financial commitments as they leave a wrong impression on your credit records.
- Try to get a raise in your salary
A stable current income status always leaves a positive impact on the lender. With a considerable amount in your bank account, it is still easier to qualify for a big amount loan. If you have any chances to get a raise in your salary, do not miss it. Monthly earning is always a big concern for mortgage companies. However, you also need to take care that your expenses on household things should not be more than 30% of your income.
- Arrange a bit deposit amount
Of course, there is no need to describe the importance of a substantial amount of deposit although the minimum percentage is 5% of the total property value but if you can extend it up to 10% or even more you can win a smooth approval on your mortgage application. There are several ways to present a reasonable deposit, for example, your cash savings or pledging of the savings account of your guarantor etc. A significant benefit of this is that you can reduce the mortgage amount and in turn, the burden of big debt.
- Hire a broker
A mortgage broking company can provide a vast platform to explore and exploit a good variety of mortgage options. Also, they take care of the complete loan procedure and save your precious time. But you should always find a broker that takes no fee from the mortgage applicants. It is not difficult to find such options if you search online. Just type mortgage broker near me like shinemortgages.co.uk, and you will find countless choices. The best thing about hiring a broker is, there will be someone to bargain on the interest rates to get you an affordable deal.
- Get registered on the electoral roll with current address
When lenders process your application, they verify your address and the electoral roll is the most preferred place for the finance companies for this purpose. If you haven’t updated your current details, the lender can consider you as a fraud person. This situation is a clear invitation to the rejection on the mortgage. Updating your details on the electoral roll also confirms to the lender that you are a responsible citizen.
- Close unused accounts
Maybe you are not aware, but unused bank accounts, store cards etc. adversely affect your creditworthiness. In addition, they represent you as a responsible person towards financial commitments. If you want to get through the mortgage process smoothly and get a yes of the lender, then keep only those accounts those are in use. However, if it is about a credit card that is unused since long, it is advisable to use at least a small amount from it. The reason is that a long credit history leaves a positive impact on the approval chances.
- Avoid big purchases
During 6 months before you apply for a mortgage, never make a big purchase. Perhaps you know the reason behind it. Large purchases bring huge size financial obligations that never give good vibes to the mortgage providers. They consume a considerable part of your income in the name of instalments. It makes the lender see less possibility to adjust the property loan instalment in your income.
Conclusion
For sure, the above ways are not challenging to follow and implement in your financial life. After all, to get a mortgage, you have to make some changes in the way you tackle your finances, and that is not a high price. Is it?
Description – Read about the pragmatic ways of improving chances of approval on a mortgage. Simple small changes and some precautions in your finances can turn the game in your favour.
