By Jerry Mooney
If you are considering buying a home, you may be worried about getting a mortgage. Especially if it’s your first house. When the economic climate was at its most turbulent, banks became fearful of lending money, and so restrictions on lending were tightened. Over the last few years the economy and the housing market has started to pick up a little, but for the most part, these restrictions are still in place. This, coupled with the enormous rise in house prices over the last 20 years means buying a home is much more challenging. However, there are some fantastic ways to boost your chances of getting a mortgage. Here is a look at 7 of the best.
Pay Off Your Debts
Debts can cost you a fortune over time, especially if they come from a variety of different places. When it comes to both paying off debt and trying to get a mortgage while you’ve still got some, it’s a good idea to move them all to one place with a consolidation loan. Look at https://www.gobear.com/sg/personal-loan for some options. Consolidating your debts can make them much easier to manage, show that you are responsible and committed to paying them off and save you a lot of money.
Save a Large Deposit
The bigger your deposit, the more likely you are to get a mortgage. However, don’t see that deposit as a percentage and start looking at more expensive houses, this is counter-productive. Set a budget and stick to it. The more you’ve got saved, the less you need to borrow.
Check Your Credit and Make a Plan
Check your credit score before you even start looking, so you don’t get any nasty shocks later. You can check your score and see a detailed report free online. Look at any issues that come up. Query anything that you don’t think is right and make a plan to improve the rest. Some simple ways to improve your score are registering to vote and paying off any outstanding bills. See http://www.investopedia.com/terms/c/credit_score.asp to find out more about credit scores and why they are important.
Collect Your Evidence
When you see a mortgage broker, they will want to see pay slips, invoices, receipts, rental agreements, bank statements and more. Especially if you are self-employed and in control of your income. Spend some time beforehand getting it all together to avoid delays later on.
Mortgage lenders want to see that you are stable. So, stop moving house until you buy.
Ask for Help
The sad truth is that most young people today simply can’t afford to buy their own home without help from their parents. Asking for help, either financially or with your application can save you a lot of time and stress.
Find the Right Home
You’ll find that it’s harder to get a mortgage for some homes. These can include older homes, apartments, houses in different locations and buildings made from unreliable materials. Do your research to find your best option.
While getting a mortgage can be stressful, remember that buying a home is meant to be fun. It’s an exciting experience and one you probably won’t get the chance to do often in your life. So, make the most of it. Do your research, make a plan and get yourself into the best financial position possible and getting a mortgage will be a breeze. Leaving you free to enjoy your move!