If you want to increase your chances of securing mortgage in today’s housing market then follow these tips
1.Keep a Good Credit Rating
You need to think from lenders perspective to increase your chances of securing a mortgage. Get your hands on your credit report copy to review your ratings. Good credit ratings increase your chances of securing a mortgage.
Make sure to close dormant or sporadically used credit card accounts.
2. Do the Calculations First
You need to calculate what sum you will be requiring from the lender and in how much time do you want to repay it. This is in turn determining your interest rate. Make sure to add up all associated costs with the mortgage. You want to be clear about splitting off your monthly revenue from the start.
3. Don’t Switch Jobs or Start a Company
Lenders want to be sure that you are in a state of stability from salary point of view. Last thing they want to know is that you are switching gears or moving in an area of uncertainty by stating a new business. It is a good practice not to switch until you have secured a mortgage.
4. Debts can Kill the Deal
You don’t want to apply for mortgage with a lot of outstanding loans. Try to reduce the debt in order to demonstrate your ability to be responsible enough to manage your money. This will also increase your chances of application approval
5. Provide Proof of Income
Keep a copies of your W2’s from your employer. This will give your lender an idea about your earnings and tax deductions on your job. You may also be asked about bank statements and pay slips for proof.
6. Bigger Deposits are Better
Your chances of securing a mortgage on bigger bank deposit is better compared to the lower one. More mortgages are available for people with bigger deposits.
7. Joint Mortgage is better
If you have an excellent credit history but don’t have the necessary deposit to secure a loan then your partner’s involvement can always boost your changes.
This type of deal should be made with a person you trust deeply and someone who can commit fully with you on the mortgage. Discuss together, all possibilities of the future. i.e. if one of you decides to move on then what will happen with the mortgage?
8. Don’t Change Your Application
Don’t change figures of the property purchase. Meddling with figures down the path of application process is not recommended because the credentials of your documents will be reassessed causing delays and problems. Follow these tips for getting mortgage approved quickly.