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Buying a home is a big step for many people and while this can provide you with a great return and many years’ of happiness, there is no denying that this is a big step for many people. A mortgage is a massive commitment and you want to give yourself as much chance of obtaining a mortgage as you can. If you are looking to get yourself mortgage ready, here are some helpful tips from us.

 

Focus on improving your credit rating

Your credit rating is one of the biggest factors in obtaining a mortgage and you need to make sure your credit rating is appealing as possible. This means that delaying any mortgage application or process by a few months to focus on improving your credit score can be of benefit. Simple steps like ensuring that you are on the voters roll for your current home, that you pay bills on time and reviewing our credit report to ensure that it is correct are all important steps to take when looking for a mortgage.

Pay off any outstanding loans that your hold

Following on from the last tip, it makes sense to pay off as many outstanding loans as you can. This will be shown on your credit score and it will be taken as a positive sign by a mortgage lender. There is also the fact that if you are paying less money on loans, you should have more available funds for mortgage payments and bills, which means that you will be more likely to pay your bills in full and on time.

Don’t apply for credit in the time leading up to a mortgage application

Another thing to bear in mind when you are looking to apply for a mortgage is that you don’t want to have too many credit applications on your credit report. This sends a bad signal to lenders and they would wonder why you need so much credit and question what your true financial position is. If you want to create a positive impression of your credit report, don’t apply for credit in the lead-up to applying for a mortgage.

Save as much money as you can

This tip probably goes without saying but the more money you have in savings that can be used for a deposit, the better. When you are able to provide a suitable size of money for a deposit, you don’t need as big of a deposit, and this is something that a lender will take to be a positive sign. You are far more likely to be approved for a mortgage if you require a smaller mortgage thanks to your deposit.

Look for schemes which provide assistance with savings

In addition to saving your own money, look for ways that you can boost your own savings. The Government provides a Help To Buy ISAscheme that can boost the amount of money you have for a deposit and you’ll find a number of banks have their own savings schemes aimed at property buyers. Look around for ways to get more for your money when you are building a deposit.

If family members can assist you and it won’t cause problems, do so

This may not be relevant for everyone but if a family member or friend is in a position to help you save money or raise a deposit, and they are willing to do so, it makes sense to take them up on this option. This option should be taken seriously, including drawing up an agreement for the loan or support, because people can fall out over financial matters but assistance of this nature can have a huge impact on how much money you can save and what sort of mortgage you can obtain.

Review different mortgage lenders and find which lenders are more likely to provide you with a mortgage

Remember that not all mortgage lenders are the same, there will be lenders that look more favourably on your application than others. It is therefore vital that you take the time to review your options and determine which mortgage lender is likely to be appreciative of your application. Taking the time to do some research can save you time in the long run, not to mention significantly improving the likelihood of your application being accepted.

Have all of your paperwork in place

You won’t be shocked to learn that you will need to provide a lot of documents and paperwork when applying for a mortgage, so it makes sense to have all of this paperwork in place as early as you can. When you are able to provide these documents in a timely manner, you will find that the process of applying for a mortgage moves a lot faster.

Applying for a mortgage is always likely to be a nervous and tense occasion but when you follow these tips, you should find that the process becomes simpler and easier to manage.

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