IFA Compare Admin
With the general tightening in Mortgage lending criteria many people are finding it extremely difficult to get a Mortgage, but with a little bit of inside knowledge you can help smooth the way for your Mortgage application to be approved.
So whether you are worried about your Mortgage application or not take a look at the 5 quick easy things you can do to give your Mortgage application every chance of success
Tip 1: Get a copy of your credit report from Equifax or Experian
Quick and relatively inexpensive, getting a copy of your credit report before you make an application can make a world of difference. When looking at their credit report some people find that their credit rating isn’t as good as they expected. This can be for a variety of reasons. Perhaps, they aren’t on the electoral role, perhaps they are still associated with an ex-partner , perhaps their rating is being affected by a previous occupier of their address, perhaps one of their creditors has made a false entry on their report. It does happen. By knowing where you stand you have the opportunity to do something about it before your potential lender gets concerned. Talk to the credit reference agency about how to make changes or corrections to your credit report
Tip 2: Get your facts right and your paperwork in order
When your potential lender asks you about your income or your outgoings as part of a Mortgage application they do not want you to guess, they want you to give them accurate facts and figures. If you don’t and they find out at best it will delay your application, at worst it will result in your application being declined. So do yourself a favour, get your facts straight in terms of your income and your financial commitments from the beginning. Also, make sure you get your paperwork together. It’s likely that your lender will need evidence of your income so get your payslips and your P60 ready. If you don’t have them then you can’t prove your income and if you can’t do that your Mortgage lender will decline your application
Tip 3: Check the Lender’s underwriting Criteria and go through an affordability calculator
You can save a lot of time and heart ache by talking to the lender you intend to apply with before you actually apply. Different lenders have different underwriting criteria and as such will be willing to accept different circumstances. If you have something you are concerned about ask the lender what their reaction to it would be so you can judge whether to apply with them or another lender. Also, ask to go through an affordability calculator with them. It takes 5 minutes and the lender should be able to give you an idea of whether you would be accepted before you make any commitments
Tip 4: Get your finances in order
All the financial commitments you have elsewhere will be taken into consideration as part of your Mortgage application. If you have credit facilities which you are not using with other banks/lenders it could go against you. For example, you may have several credit cards and may never use them, but the Mortgage lender may not be comfortable with your ability to borrow money so easily in the future if you decide to. Some applications are declined purely for this reason. So if you have credit facilities which you have no intention of using then it may be time to get rid of them
Tip 5: Give your potential lender the full picture
If there is something that you feel will help the underwriters to approve your application, but you have not been asked for it then talk to them and find out if it will help. It is amazing the kind of things that applicants don’t mention just because they haven’t been specifically asked about it or don’t feel it’s that important. The rule is: if you’re unsure, find out. You never know, it could make the difference between your Mortgage application being approved or declined.
Find an Independent Financial adviser
© Copyright 2009 - 2012 IFAcompare.co.uk. All rights reserved.