How To Improve Your Chances Of Getting A Mortgage

If you want to buy a house, you’ll more than likely need a mortgage to do it – otherwise, that’s a lot of money to just pay out all at once, and most people need a mortgage to spread the cost and be able to afford a property. 

It’s simple to say you need a mortgage if you want to buy a house, but there’s actually a lot more to it than just ‘getting a mortgage’, and it’s a long and complex process with a lot of hurdles to jump over.

However, once you do own a home, you’ll be able to enjoy many benefits, and it’s often a process people are happy to go through for that end result.

The key is to improve your chances of getting a mortgage as much as possible so you’re not disappointed and the application isn’t so arduous, and with that in mind, here are some ways you can help yourself. 

Have A Large Down Payment 

There are a few reasons that lenders are prospective homeowners to save for a down payment. For one thing, it shows that you have money to spare – money that could go towards a mortgage, for example. It also shows that you’re good with money, plus it proves that you’re serious about buying a home. And, the larger the down payment you have, the less you’ll need to borrow, which makes your monthly repayments smaller and makes you less of a risk for lenders – the less they lend, the less of a potential repayment there will be. 

That all makes sense, and therefore saving for higher down payment is definitely a good way to get approval for a mortgage. However, if that’s not possible because of other commitments, not least of which would be your rent a lot of the time, there are programs like the Dream for All program that can help by providing a down payment for you, which you’d pay back at a later date. So although a higher down payment will help, don’t despair if you can’t do it – there are other things that can help you get a mortgage. 

Pay Off Your Debts 

If there’s one thing that’s really going to be a problem when it comes to applying for a mortgage, it’s a lot of debt. A large amount of debt shows lenders that you might not be all that good with money, which will be a worry to them. On top of that, they might not want to or be able to lend to you because your outgoings are higher than your income, or at least very close – how can they be sure that you’ll pay your mortgage? How can you be sure, come to that? 

That’s why it’s wise to pay off your debt and focus on that before you apply for a mortgage. However, remember that having a little bit of debt on a credit card, for example, can go in your favor – it shows you can handle money properly. 

Use A Broker 

Another good idea is to use a broker to find a mortgage for you. You can give them all your details, and they’ll search the market to find the right mortgage lender, one they can be sure (or as sure as possible) will accept your application. 

Using a broker’s knowledge rather than trying to go it alone and run the risk of being declined (which will hurt your credit score) is definitely a good way to improve your chances of getting a mortgage.