I’m going to be doing a weekly article that gives first time buyers in Sheffield tips on what to do before buying their first home. Hopefully easing the stress and confusion that can come with property buying.
Tip One: Increase your chances of attaining a mortgage
Due to the credit crises, lenders have firm conditions attached to mortgages. It is important to show that you will be able to make all of your mortgage repayment, even when your circumstances change. To do this, keep all of your paperwork and finances in good order including proof of income, typical outgoings and household bills. This is especially important if you are self-employed.
Do not be disheartened if a lender does not want to lend to you, each lender has it’s own criteria to decide whether they want to lend to you. Their criteria will take into consideration such factors as:
-The amount you have saved for the deposit
-The size of the loan required
-Your credit rating
Check to make sure your credit rating shows that you are reliable for paying your mortgage back. Your credit file shows past loans, credit cards and overdrafts. Lenders often check your credit records to see if your payment history is good, potentially going as far as six years on all of your accounts.
Finally, make sure you register to vote! Even if you have a perfect credit score, without being registered to vote you most likely won’t be able to get a mortgage. This due to lenders using electoral roll information to run identity checks to ensure the information you provide on yourself is correct. You can check with the local council if you’re on the electoral roll, if not, then you can register here: http://bit.ly/1RjMMuB
