Searching for and buying your first home is an exciting time but as with every goal we set in life, there will be few hurdles to jump before you get to that point. One of the biggest will be getting through the mortgage application process.
Whether you simply Google best mortgage deals or opt to search for a friendly high street bank, you will still need to make thorough preparations for what is likely to be the biggest financial commitment of your life so far.
The first time I applied for a mortgage several years ago, I was rejected by a number high street banks and this almost led to throwing in the towel and renting instead.
Not giving up at this stage proved to be one of the best decisions I made.
So here are some tips I picked up from the whole experience that should help improve your own chances of success in getting a mortgage.
Forward planning is critical
If you don’t have enough cash in the bank, qualifying for a mortgage can take years of preparation.
Make sure you start saving as early as possible, the more money you have available for the deposit, the easier it will be to not only get a mortgage but also secure the best deals.
Also make sure in the 12 months leading up to your application that your financial commitments are streamlined and put off as many luxury purchases as possible.
Having too many direct debits can harm your chances of qualifying for a mortgage with most lenders as can large credit card debts.
Don’t be put off by rejection
Back when I applied for my first mortgage, I naturally went to my bank expecting them to be more than happy to give me a mortgage deal. What they came up with wouldn’t have financed the purchase of a garage.
This was disheartening at the time and as I mentioned earlier I almost gave up at that point. Yet just a bit more research resulted in finding another bank that was far more sympathetic and willing to lend the amount I needed to fund my first purchase.
Make sure you keep an eye on your credit rating
A good credit rating will make the process of getting a mortgage so much easier. The way to get one is to monitor closely (there are plenty of online services that allow you to do this) and do everything necessary to maintain a high score.
Sometimes this is easier said than done. Simply moving house too often can lead to a bad credit score and missing payments on credit cards or CCJs almost certainly will.
One tip is not to ignore those letters to place yourself on the electoral roll. Being on the electoral roll where you live is one way to improve your score.
As long as you take care of the above and have at least 10% of the price of the house you want to buy in your bank account, then buying your first property should be a breeze.