……Applying for a Mortgage: Your Guide to a New Home

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Perhaps you are living with your parents, back at your family home, whilst at the same time working hard to save every penny to buy a house. Alternatively, maybe you are considering upsizing and are looking around for the best and smartest loan deal to suit your specific purpose.

Regardless of your individual motivation, if you want learn everything you can about applying for a mortgage, read on.

Be Aware of Additional Fees

If you’re a first time buyer and this is your first time being witness to any part of the property-buying process, the jargon that realtors use can sometimes seem as if they are trying to confuse you intentionally.

In an effort to make everything clearer, it is important that you make yourself aware of the additional fees which are nearly always connected to the act of buying a home, the most prominent of which include:

  • Broker fees
  • Lawyer costs and other legal fees
  • Valuation
  • Arrangement fees
  • Closing costs

Working alongside one of the more prominent and established mortgage lenders in New Jersey will not only be afford you with detailed information on each one of your options regarding your mortgage, but you will also have all your other questions answered, too.

Improve Your Credit Score

Every mortgage lender you approach will, as part of their initial and standardized checks, conduct a credit check. Make sure your credit score is the healthiest it can be, so the more likely you will be able to borrow the exact amount of money you require.

There are several online and entirely free credit reference agencies that can send you an electronic copy of your detailed credit report. If there are discrepancies, outstanding payments, or other small issues with your credit, it is strongly advisable to try and resolve these disputes prior to applying for a mortgage.

Save Hard for a Deposit

This next point is especially pertinent should you be buying a home for the first time.

The larger the deposit and downpayment you place on your new home, the more realistic the repayment schedule will be, and the lower the likelihood that you will get yourself into financial difficulties further down the line.

Moreover, once you review your finances and possible loan options and decide upon your ideal amount of money that you would be able to put down as a deposit, the more accurate your property search can be, as the larger deposit you have, the more mortgage options you will be afforded.

Steady Employment Always Helps

Finally, but just as importantly, the longer you can prove you have been working in the same role for the same company ahead of your mortgage application, the better.

Whether you are currently self-employed or work for a large, international corporate company, you will be required to show proof of your monthly income and as a standardized minimum, copies of the last three months’ pay slips.

Additionally, any debts you have prior to applying for a mortgage should be managed and reduced wherever and whenever possible.