8 Ways to Increase Your Chances of Getting a Mortgage

When you are applying for a mortgage there are many hoops that you need to jump through. If you are worried that you may not have your mortgage approved there are things that you can do to help improve your chances. We’ve pulled together this list to help you prepare your finances for the purchase of your future home.

1. Save, Save, Save

This one might be obvious, but the more money that you are able to get provide for your down payment will help a great deal. The larger the amount that you put down on your down payment the lower the interest rate will be.

2. Know your credit score

Your credit score is one of the biggest factors that a bank takes into account when it makes its decision regarding your mortgage application. You can look at your own credit report whenever you like by making a request with a credit bureau. This can help alert you to areas that you need to improve on when it comes to your credit profile and also any corrections that need to be made.

3. Pay off debt as much and as fast as you can

Mortgage lenders will take a close look at the amount of credit that you have available and how much you currently owe. Clearing your debts and more importantly how you manage your debts is a strong indication to a lender on your ability to pay your mortgage payments and mortgage rates.

4. Think carefully about the property that you want to buy

You should be thinking of the home you buy as an investment, the lender certainly will. If you are buying a home, the lender will be looking to see that there will be some value to it in the future. A lender will be less likely to provide you with a mortgage if you choose an unusual property that may be harder to sell in the future.

5. Get your paperwork sorted

You should be able to provide all of the necessary paperwork to show who you are and where you currently live. There may be some additional paperwork that you need such as employment letters and tax returns. These should all be up to date and legible. By getting in touch with a mortgage broker today they will be able to tell you exactly what you need to get the ball rolling.

6. Self employed, you’ll need to prove income

If you are self employed you will need to show evidence of your earnings just as you would if you were employed full time. However, self-employed workers make lenders a little nervous, do you may be asked to show additional evidence.

7. Use a mortgage broker

As this is probably going to be the largest investment that you make, you should make sure that you get the best possible rate. Even a few points on your interest rate spread over 25 years can add up to a significant amount of money. By speaking with a mortgage broker that will be able to take the information that you give them and shop around on your behalf until they find you the best possible deal on a mortgage.

8. Stay calm

The whole process of buying a home can be very stressful and frustrating at times. By having an expert team of mortgage experts working hard to get you the best possible deal you can take a lot of the strain off yourself and your family.