If you plan to buy a new home soon, it’s never too early to start preparing. Follow these steps to get mortgage-ready this summer.
Work on Your Credit Score
Mortgage lenders will scrutinize your credit report to determine if you can meet monthly payments. A higher score increases your chances of approval. Check your records for free using TransUnion, Equifax, and Experian. Since lenders could use any of these agencies, pull a report from each. This allows you to address any issues and boost your score before purchasing.
What Are Lenders Looking For?
Lenders examine the last six years of your financial history to assess borrowing risk. They will inspect your existing accounts to ensure consistent payment of bills, and look for any overdrafts or loans, which may indicate financial struggles. Staying out of debt and making regular payments will make you a stronger applicant.
Avoid Discrepancies
Ensure all old accounts are updated with your current address to avoid lender concerns. Decide if unused accounts should remain open. For example, a long-standing credit card can demonstrate reliability, while an old joint account with someone you are no longer linked to could harm your credit score.
Monitor Your Spending
Be mindful of your spending in the months leading up to your application. Lenders perform stress tests to see if you could still make payments if mortgage rates increase. Saving money demonstrates financial stability. Avoid gambling and other non-essential expenditures, as they could be red flags.
Register to Vote
Being on the electoral roll is crucial for providing proof of identity and address. This is essential for lenders to verify your information.
Talk to Us
We can help make your property dreams a reality. We offer access to a range of mortgage products, advice on government schemes, and assistance throughout the application process. Contact us to get started.
Your home may be repossessed if you do not keep up repayments on your mortgage.
