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Ways to Speed Up Your Mortgage Application

Housing-Market / UK Housing May 04, 2020 - 07:29 AM GMT

By: Travis_Bard

Housing-Market

Homeownership comes with many perks, and it is everyone’s dream to become a homeowner. Thanks to mortgages, this dream has become a reality to many. It helps homeowners build their credit and make their ratings go higher, get tax breaks, and helps in building equity. The most important is that you will get a permanent home from where you will grow your family and enjoy your time together looking for new film releases and enjoying quality time. 

Getting the mortgage, however, may not be as easy as it may appear. It might take some time before you are able to buy that house that you really want. There are, however, ways that you can speed up your mortgage application. 


1. Start with a large deposit

Remember that the rule of the thumb is that the higher deposit you pay, the less interest you will also pay. As much as you can get a mortgage with a deposit of as low as 10%, it is better to work with the upper side. For instance, things will be better if you start with a deposit of 25% to 35% of the value of the property. A large deposit is more competitive since it means that you will borrow less money. Also, the more equity you have as a borrower, the better. This is because the lenders will view you as a low-risk borrower.

If you want your mortgage application process to be speedy, consider taking this approach. Save as much as you can so that when you are ready to apply for a mortgage, you will have a large deposit. The lenders will be more willing to give you a loan, compared to a borrower they consider as high risk. 

2. Pay down debt

If you want your application process to be smooth, you need to think of paying down debt. Your credit score at this point will determine the amount the lender will give you, or if they are going to lend you in the first place. Auto loans, credit card debt and any other types of debts should be settled before approaching a lender.

Not only will this affect the decision on whether or not to lend you, but it will also be used by the lenders to decide the rate of your mortgage. This is the information the lender will look at to know if you are a defaulter, and also if they are going to have problems with you.

3. Update your address

Update your address on government portals such as the electoral roll. Something as simple as this may delay your mortgage application process. Lenders want to know your current address, and that of the property you intend to acquire. If you are not registered, there is a need to follow up with your local authorities and register. Your mortgage application may be denied if this information is not available. 

4. Use a broker

Most borrowers avoid brokers due to the idea of having to part with some amount of cash, used to pay mortgage fees. However, a broker will come in handy if you want a smooth and successful mortgage application process. Remember that mortgage brokers are well versed with the industry, and they know how to find you the best mortgage products. By partnering with a broker, you will get access to databases of mortgage providers such as banks, credit unions, and specialist lenders. They can also help if you have bad credit. A broker will make the process smooth and speedy by giving you proper guidance on the same. 

5. If you are self-employed start collecting evidence of your earnings

Most self-employed individuals have it rough when applying for mortgages. Most lenders are skeptical about giving money to lenders that do not have a constant flow of cash, like the ones that are employed. This, however, does not mean that you are doomed if you are self-employed. Providing evidence of your earnings will put you in the good graces of the lenders. Evidence of accounts of about two or three years will be ideal to prove to the lender that you can keep up with mortgage payment. 

6. Have all the needed documents

You want t show the lenders that you are a serious customer. This way, they will also treat your application seriously. Missing passports, and an outdated address on your driving license will not be a good look. Bank statements and payslips are also some of the documents you will need to prepare for your mortgage application. Having them ready will make things easy for you and your lender too. 

The trick towards a smooth mortgage application process is being prepared. With the tips above, nothing will stop you from having a smooth time getting a loan for a home. 

By Travis Bard

© 2020 Copyright Travis Bard - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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