6 Tips for Getting Your Mortgage Loan Approved
Taking the plunge and deciding to move house can be hugely exciting, but it is very easy to get stressed about your chances of securing an offline or online mortgage approval for the property of your dreams.
To help you on this journey, we have pulled together six simple tips on how to get approved for a mortgage, addressing everything from the importance of keeping your finances in check to the potential benefits of undertaking a mortgage pre-approval online.
1. Be credit score-savvy
Your credit score is one of the most important pieces of information related to your personal finances, as it rates your history at being able to pay credit back.
It is well worth checking your credit score situation before even approaching the subject of how to get approved for a mortgage, as a poor rating may prove very harmful as you look to take an application forward.
2. Get your finances in order
This is an issue which understandably goes hand in hand with how to build your credit. If you want to enjoy instant success with an online mortgage approval, you should ensure your house is in order and that your finances are as tidy and organized as possible.
A key part of your efforts should be to try and reduce any levels of debt within your household, while it would also be beneficial for the time being to avoid taking any more. Put simply, mortgage lenders are likely to be wary of providing loans to those who are already facing lots of debt. In fact, they may even reduce the amount made available to you, depending on your circumstances.
3. Start saving
Another key issue to consider when you’re figuring out how to get approved for a mortgage is putting some money aside for beginning the process. As we have already touched upon, lenders can be wary and may want their customers to fulfil a range of criteria before providing support with a mortgage.
As such, you should be prepared for the prospect of paying a host of fees which may cover anything from property valuations to general administration costs for processing an application. Furthermore, you may be required to make some form of down payment or deposit when taking up a mortgage, so having some money for that may mean you can cut your loan figure and reduce monthly payments.
4. Get ahead of the game
Another key tactic when learning how to get approved for a mortgage is to consider securing some form of pre-approval for a loan. This means essentially getting in touch with a lender, telling them your plans and then receiving some kind of offer in principle.
Such a move could be sensible for so many different reasons, but a key one is that it will mean you know from the outset what you can ultimately afford before you begin the search for your dream home in the perfect neighborhood. After all, it is not uncommon for there to be a major difference between the types of properties you are looking at and what is ultimately possible.
Getting a pre-approval is a relatively straightforward process, as you just need to speak to a lender to get the ball rolling. Following that, you will most likely be asked to provide your key financial details and then they will assess the types of products you are eligible for. This step should mean you avoid any disappointment when seeking the green light on a loan. In fact, getting a mortgage pre-approval online is even easier, so if you're short on time, you may want to do that instead.
5. Know your limits
While securing a mortgage pre-approval should undoubtedly be beneficial, there is an argument to suggest that you should not simply take a lender’s word as proof of what you can afford to pay on a mortgage.
Ultimately, you and your family will have a better handle and understanding of your overall finances than an external party, so do not think you simply have to take up a large loan amount if it is on offer. Instead, consider your outgoings and approach the issue by simply taking on what you can.
6. Keep working
Finally, it is important to remember that mortgage lenders will want to know you have the means to pay off any financial support that they offer to you. With that in mind, you'll want to avoid leaving your job or making any major employment changes while you seek online mortgage approval.
If you do take that leap, you should be well prepared using our tips. Also take a look at the rest of our website for more information to get you ready. One last thing – be aware that there's the possibility that a lender may change what they are willing to ultimately offer. Nothing is final when we're at pre-approval stage.