How to secure a mortgage

How to secure a mortgage

You hear about people getting mortgage loans all the time, in fact, it seems to be the most talked about subject when it comes to buying a house and is spoken about in very casual manner. Unfortunately, this perspective can lead us not to know the first thing about mortgage loans and leads us to assume that it just “happens”.

The fact is, to secure a mortgage loan, a lot of boxes have to be ticked, so be sure to make yourself aware of this crucial step in the house purchasing process.

Stay consistent with your job situation

Job security, as you may know, is one of the main criteria selections for lenders to decide whether they trust you or not. The absolute last thing you want to do before a mortgage loan is quit or change your working arrangement in a way that severely affects your finances.

This still applies whether you’re securing a mortgage or have a current lender. If there is any shift in your employment and income status, banks and lenders are forced to reevaluate you, which could mean trouble.

Do your research

As you become more aware of your job security, you also need to know your job situation for the industry you’re in so that you can find the best mortgage broker. You will find that many lenders and brokers have a very conditioned selection criteria, which makes it hard for individuals who are self-employed or contractors.

Ensure that when you do your research, you find a mortgage broker who is compatible with your situation.

Be clear on your credit score

For the amount of time it takes to find out what your credit score is, it is mind-boggling as to how many people never review it until the last minute. Often this lack of initiative can lead to rejection of mortgage application due to the individuals being unaware of their low score.

The simplicity of this step shouldn’t downplay its importance, ensure that you clean your credit history and handle any problems regarding it.

Don’t let lenders control your budget

Oftentimes, banks and lenders are quite generous in the fact that they will initially offer you a larger loan even if you cannot afford it.

This may seem good on the surface, but down the track, you are going to be put in a high-pressure situation, and as a result, face the consequences.

Ensure that you dictate your budget before you even ask for loans, and never be tempted to spend higher than your budget if they’re willing to lend a larger amount.

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