Top tips on preparing for a mortgage appointment
The thought of finding a mortgage can seem daunting – especially if it’s the first time you’ve done it – so Your Move has come up with some top tips to help in preparing for a mortgage appointment and set you on your journey to buying a new home.
- Think ahead – and get your finances in order.
- Think about your monthly outgoings. It could affect your chances of being offered a mortgage if the lender thinks they are excessive. Cut out any luxury spending or review items that you could really do without – from monthly magazine subscriptions, spa treatments or even gym memberships you never use.
- Start keeping a record of your spending as you’ll need detailed information when you apply for a mortgage - as detailed below(*).
- Improve your credit rating – check to see what monthly payments you are committed to and if you could reduce them. To improve your credit rating, think about setting up direct debits on any regular outgoings such as credit cards and utility bills. Make sure you are on the electoral roll too as this is key to helping lenders when conducting checks like this.
- Think about saving
- As well as your deposit and monthly mortgage payments you’ll also have to consider the additional costs of owning a property so now might be the time to start either saving for them or getting used to having additional expenses coming out of your bank account each month.
- You could set up a savings account that restricts access to savings – it’s great as a way to stop you spending and also helps to make you more aware about what you spend your money on.
- Review your bank account regularly and try to identify if there are high costs associated with items such as food, clothing or entertainment - try to make savings where you can.
- Once you’ve done the ‘ground work’ you could then check what disposable income you may have for a mortgage loan with the Your Move Online Budget Planner
- Book a mortgage appointment as soon as possible
- It’s important to book a mortgage appointment - even before you’ve seen a property you want to buy – because gaining final lender approval to a loan can take several weeks.
- As part of this consider going to a company who can offer professional mortgage advice and who have access to a range of mortgage deals – many of which are from the high street lenders – and who, like Your Move, may be able to offer you more choice than some lenders who only have their own products to offer. Going direct to the mortgage lender itself, might cost you.
- Be prepared
- In advance of the appointment you’ll also need to gather together a whole range of documents (*) to support your mortgage application as well as an array of other information – the Your Move mortgage appointment checklist highlights what might be needed.
- Talk to your parents, friends or relatives to find out about their mortgage ‘experiences’ – or why not take a look at online reviews to find out about the experiences of customers who have previously used the mortgage service you choose.
- Think about the future – it might help you in deciding what kind of mortgage you need. Consider how long you might want to live in the property you are mortgaging or if you’d be looking to find another mortgage (a remortgage) on another property in a few years’ time. Think also about how you’d like to budget for your mortgage – a fixed amount each month or perhaps one that offers variable amounts each month – and, of course, don’t forget about Government Schemes which you may be eligible for.
All in all securing a mortgage can seem daunting but with a bit of forward planning (and, if you’re a first time buyer, taking a look at Your Move’s First Time Buyer Guide) you could soon be one step closer to buying the property you’re dreaming of.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Embrace Financial Services usually charges a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £499 to £999 and this will be discussed and agreed with you at the earliest opportunity.
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