Getting a mortgage is a huge time in a person’s life, but it’s never straight forward or easy. Securing a mortgage can take a lot of time and effort. It can also mean a lot of rejected attempts before you actually get accepted. This guide will help you to at least triple your chances of getting a mortgage, so you can be confident when you apply:
Your credit score plays a big part in getting a mortgage. If your score looks a little low, then there are a few things you can do to improve it. First of all, I suggest you make sure that there are no mistakes on your record. If there are mistakes on there, you need to sort them out ASAP so your record can be a true image of how you handle your finances. Mistakes do happen, so make sure you sort these out. You can then concentrate on other things that could be affecting your score, like outstanding debts.
Pay Off Any Outstanding Debts
As previously mentioned, outstanding debts can affect your credit score and won’t give a very reliable image of you to lenders. A person in debt isn’t likely to handle their finances well enough to pay off their mortgage each month, in their eyes. Before you start saving any money for your mortgage, pay off your outstanding debts and get back in the green.
Always Pay Your Bills On Time
By always paying your bills on time, you show the mortgage lender that you can handle your money well and will always pay your mortgage on time. One missed payment can make a big difference to an otherwise spotless record, so make sure you know when your bills are due to come out and that you have enough money behind you to pay them.
Close Any Bank Accounts You Don’t Use
Bank accounts you don’t use may seem harmless, but they can affect your credit score too! If there are any bank accounts that you don’t use at all or you could do without, make sure you close them ASAP. Don’t simply throw away the cards though; call the bank or go in and close them, or it won’t be official.
Avoid Living on the Edge of Credit
If you have credit and pay it off, that’s all well and good. However, if you are always on the edge of your credit, it will look to lenders as if you aren’t in control of your finances and are living beyond your means. Try to avoid going into your credit too much, even if you always pay it off on time.
Disassociate Yourself from People Who Bring You Down
You might not know it, but if you’ve ever shared a bank account with a person who has bad credit or doesn’t handle their finances well, they can bring you down too. You need to call the bank and ask them to disassociate you from these people; whether it was an ex partner or a friend you once shared a flat with.
Try the above tips, and you’ll stand a much better chance of securing that mortgage!