Getting a mortgage is undoubtedly a big financial commitment to make. And naturally, every one of us, who are in the right property-buying age, would want to have nothing less but the best deal there is. Fortunately, there are a number of things you can do if you want to improve your chances of securing a mortgage in a snap. The following pointers that I have here can be used as a guide.
Improve Your Credit Rating First
Before you embark on making an investment in the property market, make sure that you have an excellent credit score. Your credit score will have a direct impact on how much interest rate you are going to be given when you apply for a mortgage. The higher your credit score is, the better because you will be given a lower interest rate for your mortgage.
If in case that you have a not so stellar credit score, don’t lose heart because you can still improve it. One technique that I suggest you make is to discard unused credit cards and settle any pending credits that you have. It might take at least 6 months before this will reflect on your record. Additionally, while trying to improve your rating, don’t attempt to apply for any loan as it will influence your mortgage application interest rate. As much as possible you should be debt-free when applying for a mortgage.
Manage Your Finances Well
It is very crucial that you handle your finances really well. Prior to the approval of your mortgage application, anticipate if you can realistically afford the monthly repayments for it without running the risk of compromising your other monthly financial obligations such as utility bills.
Avoid Switching Jobs
One common mistake that most people commit is that they hop from one job to another. When private lenders and financial institutions conduct a background investigation, part of their protocol is to verify your work history. They will favor mortgage applicants who were able to stick to their jobs for a longer period of time, as opposed to those who has the habit of switching from one employment to another. Job hopping gives them a not so good impression of you, and may adversely influence your chances of getting lower interest rate for your mortgage.
Prepare to Present Your Proof of Income
Most of the private lenders and even the financial institutions, as part of their requirements, will necessitate you to furnish for them a proof your annual income. This will give them a good idea if you are in a good financial standing and if you can definitely afford repayment for your monthly mortgage. What comes with the annual income are your tax deductions, too.
Seek Professional Assistance from a Mortgage Broker
The main function of a mortgage broker is to help people who are in your situation. Their industry expertise makes them more than just qualified to give you give you good guidance on how to go about your mortgage application process, seamlessly and hassle-free. People who go on to seek help from a reputable mortgage broker often find very satisfying results with respect to the mortgage rates that they were given.
With respect to how much money you’d be able to borrow, your mortgage broker will address that for you. He will calculate the amount of money that you can possibly borrow based upon the requirements that you were able to furnish such as credit rating, annual salary, etc.
The pointers given above are based upon the collective experience that I and my friends have. We are presenting them here in an effort to help out someone who has no background at all in home-buying and property acquisition process.
Unfortunately, there are no shortcuts in getting a mortgage fast, but you can save yourself from frustration and unmet expectations by heeding the pointers I’ve given here.
No comments:
Post a Comment