SEVEN STEPS TO MORTGAGE SUCCESS

It is all too easy to accidentally shoot yourself in the foot during the long, drawn out and torturous process of applying for a mortgage.

So here is our list of things to try and avoid doing whilst your application is still going through!

  • ACCEPTING CASH GIFTS FROM RELATIVES

As unfair as it sounds, actually being given a cash gift during the pre approval period can throw your mortgage plans into the air.

If a relative has generously offered you a deposit for your home, or some other cash gift, it is best to wait until your mortgage application has gone through, as it may complicate matters.

  • DON’T FORGET TO CHECK YOUR CREDIT REPORT!

Making a pre application for a mortgage without seeing your credit report, would be like cutting your hair wearing a blindfold!

You need to see what lenders are saying about you before you apply for a pre-approval . Then if there is a mistake, you can put it right.

  • APPLYING FOR A NEW CREDIT CARD OR LOAN

Making another application for a loan or credit card, during your pre application period could be another no-no for your chances of being accepted by your lender.

It is best to wait to do this until after you have been accepted.

  • UNEXPECTED LARGE SUMS OF MONEY IN YOUR ACCOUNT

It is not so much that you shouldn’t have any large deposits in your account – more that your lender will wish you to verify them. So if it is your pay check, make sure you have all the relevant documentation.

  • MOVING YOUR ASSETS AROUND

During the pre application period, it is best to keep any large savings exactly where they are, as it could slow things down and create confusion.

If large sums of money are being moved around during this timescale, it may require proof and documentation – hassle you can probably do without.

  • PAYING OFF YOUR CREDIT CARD AND CLOSING IT

This might sound crazy, but actually terminating a credit card with a lender may affect your credit score.

There is nothing wrong with paying your debts off, but keep the account open – at least for the duration of the pre application period, because it will make you look more credit worthy.

For an application to succeed, lenders will be looking at people with at least two credit cards or other loans and usually for them to have had these for at least two years!

  • CHANGING JOBS

We know that sometimes this is simply unavoidable, but where possible, if you can avoid changing your job in the middle of your mortgage pre application, then do so.