Embarking on the journey to homeownership can be both exciting and daunting. Preparing for a mortgage involves more than just finding the right property; it requires careful planning and organization to ensure you’re in the best possible financial position to secure a great deal. In this blog, we’ll walk you through 10 essential steps to get mortgage-ready, from organizing your deposit and improving your credit score to seeking expert advice from a trusted mortgage broker.
Whether you’re a first-time buyer or looking to move up the property ladder, following these steps will help streamline the process and boost your confidence as you take this important step toward your future home. Let’s dive in!
- Put your deposit funds in place. This may be from savings, investments or a gift from a family member.
- Download a copy of your credit file to ascertain your current financial position and identify any inaccuracies.
- Cancel any financial accounts that are inactive and paid.
- Make sure you are registered on the Electoral Register at your current address. This increases your credit score and provides lenders with an address footprint for you. Your credit file will confirm if you are already registered on the electoral role.
- Reduce your financial liabilities by paying off any outstanding commitments. If you are unable to settle in full, making larger or additional payments to lower the balance will have a positive impact on your credit worthiness. Just check the terms and conditions of your agreement first to make sure this is allowed by the finance provider.
- Keep your monthly spending sensible and try to limit any “unnecessary” spending. Lenders like to see you are sensible with your money so avoid online betting as this paints a negative picture of your financial stability. It is ideal start this 4 months prior to applying for a mortgage as lenders can ask to see your last 3 months bank statements.
- Gather all your documents together, making sure your current address is showing as correct on all accounts. Most lenders will require 3 months bank statements, 3 months’ pay slips or 2 years HMRC tax returns, proof of deposit, proof of commitments and a copy of your credit report (at the minimum).
- Try to avoid entering into any financial agreements prior to starting this process, such as car finance, unsecured (personal) loans or large Buy-Now-Pay-Later agreements, unless you can settle the debt in full prior to your mortgage completing.
- Look at the current property market to ascertain where you would like to live, the price of the properties in that area, how long the commute is to work, etc. Once you have identified your preferred area it is a good idea to speak to people you may know who live in the area to give you their opinion on what it is like to live there. Visit the area at different times of the day (and night) to see what it is like (is it busy in the morning, noisy at night etc.
- You are now in a position to engage with a Mortgage Broker to assist you with the process. The mortgage market is vast, with lots of lenders offering different types of mortgages, with different interest rates and incentives. Onesta Mortgages are extremely experienced in the mortgage market. Not only do we provide an advice and recommendation service for your mortgage but we can also provide advice surrounding your mortgage protection needs, estate planning and commercial lending (business owners only). The advice we provide is complete impartial and transparent, with our clients at the forefront of what we do. All associated fees and costs related to the process are outlined at the start so you can budget effectively.
