For most of us, a house is the biggest and most expensive thing we will ever buy in our lives- it’s a big deal. And since most of us don’t have the kind of cash needed to purchase up front, in most cases a mortgage will be needed and it’s a whole lot of money to lend. For this reason, you want to make sure you’re getting the very best deal, and securing a mortgage that suits you. Here are some of the things you should be doing before and during the mortgage application process.
Improve Your Credit Score
When it comes to any kind of lending, having a good credit score will give you the very best rates. When you’re borrowing such a large amount of money, this is particularly important, and so while you’re saving up for your deposit- focus on building your score. If you take out some credit in the form of loans, credit cards and store cards and pay these on time each month, you will build positive credit which helps to show lenders you can be trusted. Be absolutely sure that everything is paid on time, as missed or late payments will have the opposite effect and go against you enormously. Don’t open any new lines of credit too close to applying for your mortgage, since this will temporarily reduce your credit score. A couple of years before you’re planning on applying, take out a few different lines of credit and then manage these efficiently every month.
Different mortgage providers will of course offer different rates, since these kinds of companies have to be competitive with each other it means that you can use this to snag a good deal. Don’t just settle for the first mortgage quote you find, be sure to contact several lenders and see what’s available to you. You could even consider services like https://www.selfcertremortgages.co.uk/ if you’re self employed, not a UK resident, are unable to prove your income or any other issue that ordinarily puts lenders off. The better your credit is, the more choice you will have, but it’s worth looking regardless. Use a comparison tool to save time, and chat in person with the ones that offer the best rates to get a better understanding about what they can give you.
Save Up a Larger Deposit
Having a larger deposit puts you in a much stronger negotiating position when it comes to mortgages. With a more significant deposit, you’ll be seen as less of a risk and more of a customer that lenders will want to snag meaning you could even get offered better rates. If you don’t have a great credit score, have adverse credit or anything else that would ordinarily mean you’re rejected, this could be enough to sway them to accept you. A deposit is already a lot of money, but if you save for longer or use things like inheritance money towards it, it definitely puts you in the best position possible for getting a mortgage