Seven Mortgage Tips for First Time Buyers

Seven Mortgage Tips for First Time Buyers

  • Registered on the Voters Roll

The main advantage of being registered on the voters’ roll is that lenders locate clear evidence of your address history. If you are not registered on voters’ roll due to ethical, religious or any other matter this would not be beneficial for you in the mortgage purpose. This is critical for you to be effectively ready to become a first-time buyer.

  • Three months bank statements which are nice and clean

It is vital to provide the lenders with three months personal bank statements. They will have a close look at your income to verify whether it is regular and match with the pay-slips. Sometimes, employers do make mistakes when crediting your salary. Therefore, always double-check the correct salary is reflected on both pay-slips and bank statements. On top of income, make sure that you do not have unfavorable expenditures such as gambling over these three months. This would be really important if you are trying to find a mortgage during this pandemic. Simply, you just need to make sure that your bank statements are nice and clean!

  • Be ready with reliable proof of deposit

Lender will always look at the build-up of proof of deposit funds over time. If you are using your savings, the bank statements need to reflect the build-up of these savings.  In case your deposit comes from a sale of an asset, money from foreign business, relatives, or friends, lenders would want to see the origin of funds where it came from. They would ask you to submit a gifted deposit form with the details of the provider, stating they have no interest in the property, it’s not a loan and it doesn’t need to be repaid to the provider.

  • If you are self-employed, check whether your accountant has a mortgage partner company to provide you with mortgage broker services

If you are self-employed, contact your accountant who can help you locating SA302 Tax Calculations and Tax overviews for the past three years. Some accountants provide mortgage facilities as well. So, if your accountant has a mortgage department, your application process would be much quicker. You do not have to go through the hassle of locating these documents. This would be two times quicker than proceeding with an unrelated mortgage broker.

  • Pick a digitally driven application process

When purchasing your first home, it is so critical to have the mortgage offer in hand as soon as possible to set up a date for contract exchange. Therefore, your mortgage broker should run the application process avoiding delays. Time can be saved via online verification for proof of ID and income. Fin-tech mortgage advisors are the key to submitting your application in a speedy manner.   

  • Make sure your credit file is accurate

There are several credit agencies you can use to generate a credit report. There are several things you need to make sure such as credit file does not reflect any adverse-credit which is not there, address history is up to date, healthy credit score, no arrears in terms of credit card settlements. Check my file is highly recommended as a reliable provider for your credit file as they provide you with Experian and Equifax credit check results. They have a free month trial and you can cancel the membership before it ends.

  • Select a solicitor who can process your application smooth and fast

It is important that the solicitor you select can process the case requirements without unnecessary delay. It is commonly seen in the market that different solicitors have different processing times for mortgage applications. Your mortgage broker can assist you with finding a good solicitor who can help you with smooth and fast services. Some lenders provide a cashback which can be used to cover a portion of the legal fees charged by the solicitor.

Leave a Reply

Your email address will not be published. Required fields are marked *

Share via
Copy link
Powered by Social Snap