How to Give Your Mortgage Application the Best Chance of Success | Get Financial Freedom Tips | Transform Your Financial Future


Tuesday, March 11, 2014

How to Give Your Mortgage Application the Best Chance of Success

You will have a better chance of having your mortgage approved if you are organized. Make sure to fill out any mortgage applications in advance. Provide your potential lender with bank statements, a list of any money owing or debts you may have. If you have never had dealings with this lender before, take along proof of identification and utility statements. Never hide any financial dealings as you will always get found out. This would certainly have a negative impact on your application.

Always be honest

All lenders will do a credit check on your finances so any missed bill payments or defaults may show up as a black mark on your history. Always let your lender know if you have had problems paying bills on time in the past. If you don’t have a good credit rating, take steps to improve your credit score. Having owed money in the past shows a lender you have experience in managing debt.

Mortgage Application
A savings plan

Lenders will also look at your budget and whether you have a savings plan in place. If you have accrued a considerable amount of debt, it would be best to try and clear some or all of your debt before lodging a mortgage application. Consolidating your debt can help you pay it off faster.

Your income

A steady stream of income will be looked upon favorably. It is important to the lender that you have been in continual employment for the past 6 to 12 months. No lender will approve a mortgage application if you are flitting from job to job. It is no good applying for a mortgage unless you are settled into a stable job.

Be aware of non-disclosure

Mortgage applications can be rejected on the grounds of non-disclosure. If you think you can keep a sneaky credit card hidden, forget about it. Lenders will analyze all your bank statements and if they find something you have not told them about, they can potentially decline your application.

Choose a suitable loan

Do not be tempted to buy a luxurious property well above your financial means. No lender will allow you to extend above your borrowing capacity. When borrowing for a mortgage, besides the cost of the property, there are many other factors to take into account such as mortgage insurance, stamp duty and conveyancing. These amounts will have to be calculated into your final loan figure.

When applying for a loan, make sure that the loan is suitable for you. A mortgage comes with many options. After your lender looks at your mortgage application, they can advise you of the best type of loan for you. Think about the things you would like in a loan. Take into account fees, interest rates, flexibility and repayment options. These are all important things to consider when making a mortgage application.

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