Mortgage matters – buying a home, have you got everything in order?

May 08

Securing a mortgage can be tough, and if the papers are to be believed it is about to become even more challenging. A great credit history can be pivotal to arranging the help that you require, but even some of those with exceptional ratings have struggled to convince lenders to support them in the past. The irresponsible lending that contributed to the global economic crash has led to a significant tightening of mortgage rules, so how can you get everything in place for a successful mortgage application? You’ll find detailed information about applications at Experian Mortgage Matters but here is the rundown:

Dependable proof of income

Proof of income is essential in mortgage applications, and if you are employed it’s a wise idea to wait until you have been at your workplace for at least twelve months before you start seeking funding. If you have recently been given a raise make sure to get it in writing either on the contract or on an official letter from your employer to prove the increase on your payslip is not a one-off.

Those who are self-employed are regularly advised to supply at least three years’ worth of accounts before proceeding. That being the case, engaging the services of a mortgage broker can be essential. Experienced mortgage professionals like these Ashburton mortgage brokers can help you navigate the complexities of securing mortgages, ensuring you meet all the necessary criteria for successful loan approval.

Clearing debts beforehand

Obtaining a copy of your credit report is also essential as many people have been turned down due to reports that say you have troubles with debt. You can ask for something to be amended if it shouldn’t be there, thus improving your score and heightening your chances of acceptance.

You will also have to supply a detailed breakdown of your monthly expenditure as well as information about existing debts too. Expect to find it tougher to get lenders to cooperate if you have a lot of outgoing expenditures. If you do have balances on credit cards, it’s wise to clear them as much as you realistically can before approaching a lender in order to enhance your credit rating.

The property’s condition

Affordability is about to become more important than ever, but you shouldn’t be swayed purely by a low price tag. You’ll have to think about the chances of the property’s value falling into negative equity based on the area that the property is in as well as its condition. Enlisting the help of a building surveyor to verify the condition of any home you’re interested in before you move forward. Should a house require renovations then it is important to negotiate a lower price with the property seller.

Cheaper houses usually need extensive renovation works. If you’re lucky then it is just a few rooms needing modern renovation like electric work or retiling. More significant repairs such as foundation crack repair, rotated wall repointing, and fire damage repair may prove to be troublesome for mortgage lenders. Mortage institutions want to be able to sell your home and get their money back should you be unable to keep up with repayments. They will be very unwilling to put a lot of money into a property that is falling apart unless you have a significant deposit, high income, or concrete plans to fix the issues. You may be required to take out building insurance on the property to cover rebuild and repair costs.

In conclusion. There are many factors that could affect what lenders are willing to offer. It’s a good idea to tighten your wallet during the months leading up to a mortgage application to demonstrate good financial etiquette. It’s predicted that the new changes will result in fewer mortgages being offered, so putting a good case forward has never been more important.

It’s a good move to shop around to get the best solicitor that you can afford. They’ll be dealing with all manner of paperwork and other legalities on your behalf once you are ready to make an offer on a home.