It is exciting to buy your own house but when it comes to apply for a mortgage, there are a few things to be aware of.
1. Don’t apply too many credit cards.
When applying for a mortgage, lenders will check your credit relationships to decide weather they will lend you the loan or not. So it is better to use one or two credit cards consistently and pay your bills on time.
2. Avoid unnecessary spending.
Most lenders will check your recent living expenses and what they want to see is that you have a nice budget planning. To improve the chance of being approved, it is better for you to cut some unnecessary spending three to six months before applying for a loan.
3. Choose the correct mortgage product.
There are many types of mortgage products, such as fixed or floating interest rate, principle and interest or interest only, 15 years or 30 years and so on. When choosing your home loan, it is important for you know what are your actual needs and which features are suitable according to your situation.
Again, KBRZ offers a wide variety of solutions and you can learn more about them here.
4. Have a stable career.
Lenders want to see your ability to repay the loan, one important factor they assess is your income. Generally speaking, lenders like to see a stable full-time job with the same employer for more than six months. If you just start a new business or get a new job, they might find it risky due to the potential inconsistent cash flow or the lack of standard documents,
If you’re having trouble getting because of your type of employment, contact us on firstname.lastname@example.org, we will do our best to help you.
5. Prepare documents in advance.
Lenders have to check several documents before they can offer a mortgage, so to speed up the process, it is reasonable to sort your paperwork together in advance and remember to keep them up to date. Here are some documents your lender may want to see:
- Your latest statement for your credit cards
- Your latest bank statements
- Your last three months’ pay slips
- Your latest tax form
- Your recent tax return
- Your savings (proof of deposits)
- Your ID documents
- Your utility bills (proof of living address)