Applying for your first mortgage is an exciting but daunting moment. Then, finally, your dream home is on the line, and with it, your whole future. The world of mortgages can seem baffling, with endless and confusing criteria, but there are a few things to bear in mind that can boost your chances.
#1 The bigger the deposit, the better
It’s difficult, but there’s no getting around it: the more you can put down as a deposit, the better. A large deposit makes lenders significantly more inclined to back you and all but guarantees a better rate. For example, a Mortgage Company in Coral Springs will make offers depending on how much money you can pay upfront. Many of these companies also have online calculators, so you’ll be able to work out how much you can borrow, along with the rate, based on your deposit.
If you can’t scrape together much of a deposit independently, it’s worth considering going in with somebody else. If you can buy a house with a partner or even a friend and offer a bigger deposit in the process, then your chances will be boosted significantly. You’ll probably get a better rate, too, but a word of warning. Ensure that the other person has a good credit history and isn’t saddled with debts.
#2 Long term employment helps a lot
It stands to reason that long-term employment gives lenders confidence, but the situation is more complex even than that. You’re more likely to secure a mortgage at a favorable rate if you’ve been in the same job for a long time, rather than swapping and changing. Of course, it’s even better if you’ve been able to progress within that job, earning promotions and scaling through the company, but stable, long-term employment in the same place is usually enough.
This kind of stability shows the lender that your life is settled, that you’re reliable, and that you have job security. In addition, people who have worked in the same place for a long time are less likely to suddenly become unemployed, boosting lender confidence no end. Remember, lenders need you to pay back the mortgage with interest. Job losses or time spent unemployed can interfere with your ability to do that.
#3 Don’t tinker with your application
As insignificant as it might seem, don’t change your application once you’ve started it. Endlessly adjusting figures up or down is a sure sign of instability and will put lenders off. They want to feel that you’re in complete control of your finances and are fiscally responsible. Showing that you’re unable to keep to a set of figures is likely to raise questions over how you’ll be able to cope with a repayment schedule.
This does, of course, mean that you need to be extra careful when you begin your application and submit your first set of figures. Be realistic and be prepared to back up everything you say with bank statements, proof of funds, and payment slips. An honest, fully appraised, and realistic set of figures is the best way to secure a mortgage at a good rate.