Most Common Mistakes People Make When Getting a Mortgage
If you are applying for a mortgage, then the last thing that you want to do is make a mistake that could end up costing you your dream home. If you want to make sure that your application and home-buying journey ends up being as smooth and as stress-free as possible, then this is the guide for you.
Electoral Roll Errors
It’s free to sign up to the electoral roll, and you should be signed up to it, even if you have no intentions of voting. If you are not on the electoral roll, then this can be seen as a major red flag for a lot of mortgage lenders. Being on this database essentially shows that you are who you say you are and that the address you are living at now is correct.
Moving too Much
People move house for a lot of reasons, but if you move too often then this can work against you. Ideally, you should try and avoid moving house, one year before you go for your mortgage. Banks can access a world of data regarding your behaviour, and studies have shown that those who stay in the same place for a long period of time tend to be much more stable overall.
Not having Credit
Having a credit card is always a good thing, if you pay it on time and if you use it carefully. It proves to a lender that you are responsible, and you can make payments. Both of which, are crucial when applying for a mortgage.
Betting
Having the occasional bet is fine, but if you make regular payments to a gambling site then this will show up on your statement. The last thing that you want is for the bank to think you are a risk, so try and avoid this if possible.
Getting a New Job
Sure, you may want to get a new job so you can get a higher income or better career perks, but again, this can be a red flag to a lender. Lenders like to see people who have a stable employment history, so ideally, you need to have continuous employment history. Some lenders do accept applications from those that are in their probation periods, while most lenders prefer you to be employed for at least 3 or 6 months before they consider your application.
Payday Loans
If you have used a payday lender, this will show up on your bank statement. Lenders do not like to see things like this, as it is a sign that you are not great at managing your money. Avoiding this is crucial if you want to apply for a mortgage in the near future.
If you can take the above tips into account when applying for a mortgage, you should be able to improve your chances of getting a good deal, drastically.
