Taking out a home loan is, for most of us, a necessary step if we want to get on the property ladder. It is also one of, if not the, biggest financial commitments we’ll ever make, which is why it’s so important that you’re able not only to get approved but that you’re able to get a great deal on your mortgage too. Here are some tips to help you do just that:
Fix Your Credit Score
I can’t emphasize just how important it is that, if you want to get your home loan approved the first time and get a great deal, you need to have a great credit score.
Your credit score is used to determine your credit-worthiness by the banks and financial institutions, and if it is low, you’re much less likely to be accepted for a loan, or if you are accepted, it isn’t going to be on the best terms.
If your credit score isn’t as good as it could be, take a look at creditrepairreview.co to see how you can improve your situation and start making changes. Work on your credit score before you apply for your home loan and you’re much more likely to get the outcome you desire.
Do the Maths
It’s also important that you sit down with a calculator, or visit mortgagecalculator.org/ and work out how much money you can actually afford to spend on a mortgage each month. If your application is for a sensible sum, that you can clearly show you’ll be able to afford, success is imminently more likely.
Stick with Your Job
Home loan lenders want to see that you are in stable employment before they sign off on your loan. That means it’s always a good idea to stick with your current job until you’ve secured your loan. Then, if you want to make a change, you can think about doing so. As a minimum, being in the same role for 3-6 months before applying for a loan is a good idea.
Pay Down Your Debts
If you have a lot of debts, you might find it more difficult to get a home loan because, lenders will look at your whole financial picture before making a decision, and if they worry that you’ll be able to meet all your commitments, they’ll be much more hesitant to say yes. So, it’s never a bad idea to start paying down your debts in the months before you plan to get a mortgage.
Save for a Bigger Down Payment
The bigger the down payment you have, the more home loan choices will be open to you because you will be demonstrating that you’re financially capable, and you won’t need to borrow quite as big a percentage of your property’s value. This is the best way to ensure that you get a really great mortgage rate.
If you do all of the above, and you ensure that you are scrupulously honest on your home loan application, there is an excellent chance that your loan will be approved on great terms, making life a lot easier for you!