How Working with a Mortgage Broker Can Help You
Understanding what lenders look for and ensuring you meet their criteria can greatly increase your chances of securing the mortgage that you want. So, to help you out, here are some top mortgage advice tips, including why it’s important to work with a trusted broker throughout the application process.
Understanding What a Lender is Assessing
Mortgage lenders assess applications based on a range of factors, all of which are used to determine whether you are a suitable borrower. These include the following.
- Your credit score
- Your income and employment stability
- Your debt-to-income ratio
- Your deposit size
- The property you want to buy
Of course, this can all vary from buyer to buyer, and you may have to meet more stringent criteria if you are self-employed or have a less-than-ideal credit score. Bearing the above in mind before you apply is a great way to get started though!
How a Mortgage Broker Can Help
Navigating these requirements can be daunting, especially if you are a first-time buyer. That’s where a mortgage broker comes in. They can simplify the process and significantly improve your chances of approval. Here’s how they can help.
Mortgage brokers have access to a wide range of lenders and deals, giving you as much choice as possible. Their years of expertise will allow them to match you with lenders most likely to approve your application based on your circumstances.
Personalised Advice
A mortgage broker will take the time to get to know you and understand your financial situation and goals. They can recommend specific actions to improve your odds of success, helping you to get your application in great shape from the very start of the process.
Saving You Time and Effort
Instead of submitting applications to multiple lenders in a short space of time and negatively affecting your credit score, a mortgage broker will identify the most suitable lender for you. This targeted approach increases your chances of success – and saves you so much time!
How You Can Improve Your Application
In addition to working with a mortgage broker, you can take some steps to make your application more appealing to lenders.
Check Your Credit Report
Ensure your credit report is accurate and up to date. You should pay off outstanding debts if you can and avoid taking on new credit in the months leading up to your application.
Save a Bigger Deposit
The larger your deposit, the better the mortgage terms you will be able to get. If possible, take extra time to save more before applying and/or ask your family if they could gift you some money towards your mortgage deposit.
Get Your Documents in Order
Lenders will require things like proof of income such as payslips or tax returns, bank statements, and identification documents. Having these ready can streamline the process.
Reduce Outstanding Debt
Paying off as many debts as you can not only improves your credit score but also lowers your debt-to-income ratio, making you more attractive to lenders.
You’re All Set!
Securing a mortgage doesn’t have to be overwhelming. By understanding what lenders look for and enlisting the help of a mortgage broker, you can greatly increase your chances of approval. So, what are you waiting for?
