Applying for a mortgage is likely to be one of the biggest financial decisions you ever make. Taking the time to prepare and really understanding what a lender is looking for – before you make your application – could not only affect you getting approved, but could also save you a lot of money in the long term.
This guide will give you some simple steps to follow to ensure you are in the best possible position to have the mortgage you can afford approved – and at the best rate.
The mortgage lending process
Usually a lender (the bank or building society) will consider the following when deciding whether to approve your mortgage application:
- The information in your application form, including your salary and employment status
- The information in your credit report
- Their own policy rules
- The amount you want to borrow and size of your deposit
- Your monthly outgoings and spending habits
- Any additional information they may hold on you.
PART 1: UP TO ONE YEAR BEFORE MAKING YOUR APPLICATION