How to Start Preparing for a Mortgage Application?

So, you’re thinking about taking the leap towards getting your own place? Before you dive into the sea of home listings, you’ve got to prepare yourself for the mortgage application process. Don’t worry, we will break it down into simple terms, so you know exactly what you’re getting into. 

Get Your Finances Organised

First things first, money. You need to take a good, hard look at your finances. Lenders want to know you’re a responsible borrower, so pay off any debts and make sure you’ve got a steady income. Oh, and the down payment is like your mortgage admission tickets, so start saving! 

Check Your Credit Score 

Your credit score essentially tells lenders how trustworthy you are. So, before even applying, take a look at your credit score. If there are any issues, start doing what you can to improve things. Remember – the better your score, the better the terms of your mortgage could be. 

Pre-Approval 

Mortgage pre-approval tells you how much you can afford and shows sellers that you’re serious. To get this magic ticket, collect your financial paperwork, fill out the application form, and let the lender do the rest. 

Search for The Perfect Lender

As with everything, not all lenders are the same. It’s important that you find someone who ‘gets’ you. Don’t be afraid to ask questions, compare mortgage rates, and fees, and search for customer reviews. This is a big deal – you should treat it like one. 

Documents! 

Lenders love nothing more than documents. Be prepared to show bank statements, tax returns, evidence of earnings, and just about everything else you can imagine. They want to see anything that proves you’ve got the ability to handle a mortgage, so set out to impress. 

Know Your Budget

While shopping around you’re likely to come across several fancy houses you’d really like, but you need to sit down and ask yourself if you can actually afford it. Work out what monthly payment really works for you. Remember, you still have your life to live after the mortgage has been paid. 

With your finances sorted and your paperwork strong, you’re ready to dive into the mortgage world. If you want to find out more about investment property interest rates or need any more information, get in touch. We’re here for your peace of mind.