Getting onto the property ladder can seem out of reach for many, especially with volatile interest rates, a shortage of affordable housing, and the cost-of-living crisis. However, with the right guidance, it’s possible to increase your chances of securing a mortgage.
According to Jo Pocklington, Managing Director of Purplebricks Mortgages, being ‘mortgage ready’ is crucial. This involves taking a hard look at your financial management, just like a lender would before granting a loan.
A smooth mortgage application process starts with being prepared
One common mistake is being careless with bank transfers. We’ve all done it - transferred cash to a friend or family member and added a humorous reference. But this can raise red flags with lenders. Federal Trade Commission recommends being cautious when sharing personal financial information.
Keep your bank statements in order to prove you can afford your mortgage
Another pitfall is not considering longer mortgage terms. While it may seem daunting, spreading payments over 40 years can make your monthly payments more manageable. Just be sure to factor in your ability to repay the loan over the longer term and how much you can afford.
To avoid further mistakes, close out-of-date bank accounts and ensure you’re registered on the electoral register. It’s also essential to limit your credit applications and avoid overspending. By staying within your means and demonstrating responsible financial behaviour, you can increase your chances of securing a mortgage.
Secure your dream home with the right mortgage
Remember, getting a mortgage is a serious business. Avoid applying for multiple credit cards and focus on building a strong credit history. And if you’re struggling to get a standard credit card, there are alternative options available.
Mortgage tips from the experts
In conclusion, securing a mortgage requires discipline, patience, and careful planning. By avoiding common pitfalls and following the right guidance, you can increase your chances of getting the keys to your dream home.
The key to your dream home is within reach