Archives April 2019

Making sure the lender says yes for your mortgage.

Making sure the lender says yes for your mortgage.

There is no sure-fire way for mortgage application to be approved. You just never know what a lender is looking for. There are lots of specified reasons you may not get accepted or actually get accepted for a mortgage. Based on income, what you want to lend, what your credit report is, how long you have been working, if you are working, what your job is, your age… the list is endless, well not endless but long. So making sure you can definitely get accepted is not a sure thing. But like anything worth doing, you have to make sure you can give yourself the best chance.

1 –

If you are going direct to the lender, make sure you speak to them about what they need, that the information you need to prepared. You have prepared. Most lenders have comprehensive information on the website about their requirements for a mortgage. Now things will be different per lender but often it will be things like proof of income, payslips, a comprehensive budget (this is explained deeper in the next point).

2 –

Make sure you have developed a comprehensive budget. Most times we do not put down everything but to develop a comprehensive budget you really need to identify exactly your income and outgoings are.

Here is an example of a things to consider in your budget.:

All income – look at the following

  • Income from your job
  • Your job may have overtime, bonus shifts etc,
  • Freelance work
  • Income from assets

Anything you consider, you need to take in the general amount of money that you have come into bank each month. You cannot really take in yearly bonuses as these are not a stable income. But say if you are a nurse and on average take three additional shifts a month, then these will absolutely be taken into account.

All Outgoings

  • Rent (yes they will look at your rent and how you are managing it so far)
  • Food
  • Car, petrol, transport
  • Entertainment and Leisure
  • Utility bills
  • Telecommunications
  • TV (license and things like Netflix)
  • Clothing
  • Hobby spends
  • Children and dependents
  • Debts and credit cards.
  • Savings
  • Any thing else you can think of.

It really is worth taking the time to work this out.

  • A mortgage broker. Does not accept and deny you a mortgage so they can take the time to get to know you. Yes they will get you to go through all your ingoings and outgoings. But the great thing is they will be able to give a professional opinion about your chances; but not only that, but will help you find the right lender for you. The issue with mortgage applications is once you apply for one, if you get rejected, this stays on your credit report and can harm future applications.
  • Make sure your credit report is tip top. This is true for most financial applications but do all you can to ensure your credit report is working for you. It is always checked for an application and it is always taken into account.

As always speak to someone you trust and make sure when getting a mortgage take the time to make the right decision for you. Speak to different people, speak directly to lenders as well as brokers. All of these hoops to jump through for a mortgage is all about the lender making sure you can payback everything given to you plus interest.

Your home may be repossessed if you do not keep up repayments on your mortgage.