If you are looking for a dream home, then it is likely that your first step is going to be meeting with a mortgage lender. Instead of turning up and being caught off-guard at your first meeting, below are some great tips to get you started on the right track.
- The first thing that any mortgage broker will do is check your credit history and rating.
- Don’t let the first time that you see this information be at your meeting. Instead, order your own copy of this information and make sure everything is in order.
- If you notice an incorrect address or a card which you didn’t apply for, have it fixed before you see your mortgage lender.
- With your financial history sorted, it’s time to look at your current financials.
- Sit down with your budget and work out any and all income streams and outgoing obligations.
- While this can seem like an easy task, it is important to remember that a mortgage can last 30 years, so be sure to include a similar length of projected income and expense.
- Hold your application until you can Improve your financial situation.
- If you are expecting a pay raise or a promotion, wait until this is confirmed and you can show a greater capacity to pay.
- Lenders don’t like small ongoing payments as these can quickly add up.
- Replace phone repayments by paying for your phone in full.
- Replace ongoing optometrist sessions and costs with a one-time visit to your local Lasik treatment center.
- If there is a store or credit card about to be paid off, wait until it has been paid and the same is reflected on your credit report.
- Just because you look at your current financials doesn’t mean that you are going to like what you see.
- If you are uncomfortable with your financial situation and don’t think that a mortgage is something you can take on – don’t!
- A mortgage is a huge responsibility and one which can lead to serious penalties if you don’t maintain payments. If in doubt – wait it out!
The success of your application can greatly depend on how well your first meeting goes. Make your mortgage broker feel comfortable that you are organized and aware of the obligations you are taking on by using these tips and turning up ready to sign.