If you spend all of your spare time scouring the internet for new property listings to see if they are your dream home then the chances are that you are also on the lookout for a mortgage. Unfortunately, this search isn’t as exciting as the one for your home.
It’s the non-exciting aspect of searching for a home which this article is here to help with.
Stop Making Excuses
Well actually, make sure that you don’t have to start making them. Especially not to your potential mortgage broker or lender.
It’s no surprise that the first thing any lender will do is to check your credit history and score, so get a copy yourself before you meet. Once you have the report, sit down with some time to spare and go through each and every one of the details recorded. Pay close attention to instances like:
- Your name is spelled incorrectly. Even a letter difference.
- An unfamiliar address
- A credit application you never made
- Any listed debts which you don’t recognize
- Any cleared payment still showing as outstanding
If you see any of the above or anything else that looks out of place, report it immediately to your credit reporting agency and have it rectified before you meet with your lender.
What’s Your Position?
Now that you have sorted out your past, it’s time to assess your current position. Start by creating a budget which lists all of your income streams against all of your outgoing expense, along with how you are saving for any forecast big-ticket expenses in the future.
Along with this budget, be sure to bring along any supporting documentation. As proud of the savings as you are, your lender won’t want to see the receipts from the Groupon Coupons page for Hot Topic, but they will want to see anything that shows your position, such as:
- Bank statements which show your ability to consistently save money
- Recent pay stubs and information
- Letter from your employer confirming your employment status and future employment likelihood
- Credit card statements which show a consistent level of repayment, being imbalances down to zero
Once you have all of this, put it together in a packet ready to hand to your broker or lender.
What on the Cards?
With the past and the present taken care of, it’s time to think about your future. In particular, whether you can afford to have one.
If, after you have prepared all of your information and assess your financial situation, you have realized that you aren’t in the best position to take on a mortgage, then wait! The worst thing that you can do is accept a mortgage which you’re not confident you can pay back as agreed.
While it’s true that the mortgage process isn’t the easiest one to navigate, by following this article and preparing yourself and your situation, the process will be much easier and over before you know it!