Helpful hints to start your mortgage process
Searching for homes and applying for mortgages can be intimidating without a little assistance.
09:10 19 November 2013
If you are hoping to get a mortgage you might be discouraged by the intricate process, and even more so by the task of finding a mortgage loan.
There are many different things to keep track of when trying to get a mortgage, so here are a few helpful hints to get you started on the right path.
- Find out what types of assistance or special programmes you might qualify for. There are multiple schemes available for a variety of scenarios, such as the Help to Buy programme for first-time homebuyers.
- Request your credit scores and credit history from all the credit companies so you will know exactly what shows up and what to expect for information.
- Take the time to address any errors that you may find on your credit report. This can be time consuming, although reports are technically supposed to be updated every thirty days.
- Research and narrow down the mortgage lenders you want to apply to. You may also be able to provide credit reports to the lenders to prevent inquiries from showing on your history. There may be a requirement for how recent the report should be, so do not assume they will accept credit reports that you pull yourself. Applying to many lenders at once can lower your score and make it appear that you are financially desperate.
- If you have a lot of open credit accounts, you may want to consider closing some of them so the mortgage lenders will realise that you will not have the potential of increasing your debt to the extent that your ability to repay will be threatened.
- Be very diligent about making all your bill payments on time every month. The more payments that show up on your credit report with positive marks tells the mortgage lender you are financially reliable.