Some Simple Ways to Make Your Application More Appealing to Mortgage Lenders

What should you expect when you apply for a mortgage? Not many people may know this, but the criteria for mortgage applications have changed a lot in recent years. Previously, mortgage lenders simply looked at a person’s income and made their calculations from there. But things have changed, and lenders now assess multiple factors, such as your spending habits, bills, future plans (whether you want to change jobs, have children, etc.) other loans you may have, and so on. Lenders then use this information to assess the gap between your monthly expenses and your income – and then base their calculations on this.

But there’s no reason to be concerned just yet. If you are planning to submit an application for a mortgage, there are certain things you can do to make your application more attractive and appealing to lenders. Let’s have a look.

• Be on the roll

The first thing you can do is make it a point to be included in the electoral roll. This means that your identity is verifiable, and this also means that your address is in order. Remember that lenders will verify your address against your name, and everything should be consistent.

• Know your credit rating

Your credit rating also makes a big difference, so know what it is. You can find out from credit agencies like Experian, Callcredit, and Equifax, which can send you a credit report. If there is anything wrong with your records, it’s your chance to fix it.

• Get a credit card – or make a charge

If you don’t have a credit card yet, now is the perfect time to get one. Lenders appreciate borrowers who have a credit card and who know how to pay back their debt. In fact, the longer your history with proper credit card payments, the better. It shows that you are reliable and dependable when it comes to loan repayments. If you have a credit card, put a charge on it, and make sure to pay it back on time.

• Don’t move

Those who are planning to apply for a mortgage are also advised by an expert mortgage broker from the Essex company, Flagstone, not to change their address for at least six months. Lenders prefer applicants who are stable, and this means staying at the same address for a while. This also means stability when it comes to career – ideally, you should have had the same job for a minimum of 6 months. Try not to change jobs when you’re planning to acquire a mortgage; you would want the lender to see a steady and stable income on your bank statement for at least 6 months to one year.

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