You are finally ready to take a step further up the property ladder. Whether you are a First Time Buyer who is new to this or a Home Mover in Coventry with experience, you will still need to start getting prepared for your new mortgage. Here are some tips from your expert Mortgage Broker in Coventry:
As a Mortgage Broker in Coventry, we highly recommend in getting Mortgage Advice as early on in the process as possible. This will allow you to get an idea of how much you can borrow for a mortgage and how much everything is going to cost you
You need to prioritise getting an up-to-date credit report as you need to get an idea of what your credit score looks like. The better your score, the more chances that you have in securing a mortgage. There are many ways that can you improve your credit score and surprisingly, it can sometimes be easier than you would think. In some cases, it is even possible to get a mortgage with a low credit score, this all depends on a lot of different factors and of course your lender.
Taking these two factors into account, having both a Mortgage Advisor in Coventry and an up-to-date credit report could prove extremely beneficial to you and your mortgage application. A Mortgage Advisor in Coventry will sort everything out for you and guide you through the process, what more could you want?
Here at Coventrymoneyman, we are able to obtain a fully credit-checked agreement in principle on your behalf. A Mortgage Advisor in Coventry will get you prepared for everything before submitting your application. This means that they will ask for some proof of identification. You will need to prove you are who you say you are, along with your living address and how much you earn.
With this in mind, you can start getting all the documents you need ready!
In terms of proving who you are you’ll need to produce some photo ID such as a driving license or passport.
In addition to the above, you’ll need to prove where you live. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.
Lenders will always take more interest in your spending habits than anything else. They need to be 100% sure that you will be able to meet your monthly mortgage payments on top of all of your other outgoings. They will look very carefully at your bank statements and take everything into account.
One thing that lenders don’t like to see is gambling, it’s a factor can catch people out because they don’t realise that it can affect your chances of getting a mortgage. Lenders also don’t like it when you go over your overdraft limit as you are essentially spending more than you originally had and then do it again when the money isn’t even there. This is why we always advise that you manage your money carefully and make sure that your bank statements are going to impress your lender and not put them off.
You will have to prove you have the funds in place for the deposit and also evidence this for anti-money laundering purposes. Try not to move monies around your various accounts too much as it will make evidencing the audit trail more difficult. Lenders really like it when their applicants can evidence that they have been saving for their deposit. It shows that you know how to put money aside every month and not overspend. You’ll also need to account for any large credits into your accounts.
Quite often money for deposits has been gifted by family members. These funds need to be evidenced also and the “donor” will need to sign a letter. This is to confirm that the funds are strictly a gift and not a loan.
In terms of affordability, the most important thing is to be able to prove your income. If you are employed this tends to be by way of your last 3 months’ payslips and most recent P60. Lenders can take into account regular overtime, commission, shift allowance and bonus.
If you are Self Employed then you’ll need your accountant’s help. This is so that you can get your last 2 or 3 years’ SA302 documents from the revenue. Following that, they will get the accompanying tax year overview.
Always, always do your research. Getting ahead and making a note of your anticipated outings after you move house puts you in a great position for starting the application process. You can work out an estimate of how much the council tax and utility bills will be. In addition to that, you can work out your regular expenditures, such as food and drink. This will demonstrate how much disposable income you have available to pay your mortgage from.
You need to accommodate lots of time to prepare for your mortgage application. However, sometimes it can be easier and much quicker to approach a Mortgage Broker in Coventry to sort everything out for you. A Mortgage Advisor in Coventry will work out how much everything is going to cost you and guide you through the whole process as well as trying to secure you a competitive mortgage deal!
Getting ahead and planning early will always impress your mortgage lender. Let us an expert Mortgage Broker in Coventry help you out today! Receive a free mortgage consultation and get in touch.