For quite a long time, your heart and mind are repeating these two sentences. After all, you are planning to buy your own home. It is so exciting to have your own roof. Nothing to be afraid of, decorate your place according to your choice, no restrictions. See your family laughing loud in the backyard. The living room will be the junction of happiness, where while sitting with the whole family you can enjoy beautiful moments full of warmth. That sweet fight for the television remote can now carry on under your own roof.
Mortgage – The Final Financial Destination
Wow!! Your dream of dream home is completely ready to reach to its destination. The only concern is to gather the suffice financial fuel to keep the fire of hope ON. Mortgage is obviously the first and foremost need to bridge the financial gap between you and the big purchase.
As a first time buyer, you are nervous and full of countless and fearful anticipations. One of the most dominant among them is about the rejection. No, you cannot lose things so easily after such a long journey of hopes and spending years in the zeal to realise the dream.
The journey to get approved for mortgage
Mortgage for first time buyers is available in the market. With a small bunch of formalities, you can get approval, especially with the new online lending culture, you have better chances. The online loan companies have a liberal approach towards the applicants. The procedures are specifically faster and less complicated than the established ones.
Important factors to get smooth approval
Without wasting any time why not know about the actual things that can get you approval when you apply for mortgage.
Work on the deposit part –
The lender asks the very first question about the money you are giving to the property owner as deposit. The loan procedures take place according to the gap that remains after deducting the deposit amount from the property price. The lender needs to know the advance amount you are giving for the property. The idol deposit percentage for the home buying is 5% of the total value of property. However, it is better to do as much deposit as you can. This helps you lessen the burden of mortgage as the obligation. More deposit means, less loan amount means smaller obligation.
Then comes your credit record –
It is always good to have a good credit score however, some lenders like Shinemortgages.co.uk also provide bad credit mortgages in the UK. But the safer way to play is to have a good credit rating. If you are in poor credit situation then before applying for the loan, try to improve your credit ratings.
How? There are simple ways for that.
1) Close the unused credit cards, bank accounts, store cards etc.
2) Pay the bills and obligations on time.
3) Quit from joint financial commitments if you have split-up with your partner. Their financial behaviour can affect your credit score.
4) Check your credit report regularly from credit reference agencies to make sure there is no mistake in the details. If there is any, then get them improved.
It is necessary to have a good current income status
Mortgage is a big and long-term obligation. To get approved for it, you need to have a good income to show the lender that you can repay the loan instalments on time. In fact, this helps not only in getting smooth approval but also you can get the desired amount.
The above factors help you get a pleasant ‘yes’ on your mortgage application. For sure, the journey takes some time but long-term investments cannot be done in a short while. Home is a place which becomes the shelter for your future, obviously this should be handled with care. Right?
How To Ensure Approval On Mortgage As A First Time Homebuyer?
‘Home Sweet Home’, ‘Home Dream Home’!!!!!