Here are some tips to maximize your chances and a guide to how the whole process works. Over the course of the recession, being approved for a mortgage has become increasingly difficult. Many lenders have added extra clauses and conditions to their offerings and even withdrawn certain products. First-time buyers have been affected more than most and many have been forced out the market. However, signs are looking more positive and as the economy is stabilizing here’s a guide to maximize securing yourself the best mortgage deal you can.
Do Your Research
As with most things, the first option is not always the best so it’s advisable that you assess the market well. Visit and discuss with as many lenders as you can in person or on the internet and see what they can offer. Price comparison sites are more popular than ever and can be invaluable in allowing you to compare what’s available. If that sounds like a lot of work you could consult an independent financial advisor but you must consider their locality, areas of expertise, online presence, recommendations and areas of expertise. You need to ensure that they not only fit in with your financial goals but you get on as well.
Make Sure You Provide the Right Information
Whether you’re picking and choosing yourself or consulting a financial adviser you need to ensure your providing details that will ensure you maximize your chances of being approved. A lender will want to see as much evidence as possible that you can afford the mortgage which usually means providing proof of your income through wage slips. They will also request bank statements as well as proof of ID and residency.
Figure Out How Much You Can Borrow
As opposed to a few years back before the economic downturn, you’ll need a substantially larger deposit. To get the very best rates expect to need to give a 25% deposit and if you only have to put 10% down then you’ll be paying a premium rate. There are also much fewer mortgages available that need only 10% deposit in the current climate and credit scoring is stricter than ever so you’ll need to have an excellent credit rating too!
Waiting for the Outcome of Your Application
Usually you’ll know the outcome of your application quite quickly but every application is subject to individual assessment. Once your application passes initial assessment, the property for which you’re borrowing the money will be valued on behalf of the lender which all in should take around 2 weeks. If the lender is pleased with this then you and your solicitor will both be issued with a copy of the mortgage offer. From this point all the legal processes, transfer of the property to your name and drawing down of your funds should take anywhere between 4 to 8 weeks.