It is amazing how many people never get to own a property or add to a property they own – because of mortgage issues or worries.
Getting a mortgage is not hard, believe it or not. Lenders are in the business of lending money to make profits, to keep their balance sheets smelling of roses.
They want to lend money; they need to lend money. Lending is what they do. All things being equal, they always prefer to lend than not to lend.
But you try telling that to people who have tried and failed to get a mortgage or who just can’t see a way a home loan company would take them seriously – they would probably think you are a bit of an idiot – or something worse!
Getting a mortgage is not about magic, favouritism or luck. It is about meeting the specific lending criteria of the lender you approach. And they don’t all have the same criteria.
That is great news for you. It is not a one-size-fits-all situation. If your credit history or score is not spotless, there will be lenders out there prepared to take a chance on you. You simply need to convince them that you are not a bad credit risk.
What if you are a bad credit risk?
In that case you are a danger to yourself, as well as to them, and you really shouldn’t be looking to borrow until you can improve your risk profile.
Of course mortgage companies are hard-nosed commercial enterprises at heart. They are not charities.
DON’T KID YOURSELF THAT YOU WILL BE ACCEPTED FOR A MORTGAGE IF YOU ARE NOT FINANCIALLY FIT FOR A MORTGAGE.
Further, if you are not the ideal risk profile, they will charge you for it – perhaps quoting you higher rates and fees – but then that is what business is all about.
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Here are some tried and tested practical steps you can take to improve your chances of getting the best mortgage out there for you, taking into account your own unique circumstances:
1. Pull out all stops to raise the deposit or down payment you need to secure the mortgage you want.
In appreciation that putting a deposit or down payment together is one of the hardest things, especially for millennials and young people generally, I have written a short and sweet book “QUICK HOUSE DEPOSIT” which reveals 50 everyday methods to raise a house deposit fast.
You can buy the book HERE
2. Raise as large a deposit as you can. Often the best mortgage deals and rates go to the buyers making the biggest contribution from their own pockets.
3. Cultivate a top-notch credit record and keep it good by immaculate budgeting and careful management of your payment of loans and debts to avoid late or missed payments.
Remember that it can take a long time to build a good credit record, but only a few stupid mistakes – like missing a few loan or credit card payments – to seriously mess things up.
If you spoil your credit record or don’t have a good one in the first place, don’t assume all is lost. Look at ways to repair your credit record and find a specialist mortgage adviser who can identify mortgage companies which will look at borrowers like you.
4. Consider engaging a mortgage adviser or broker from the start. A good one will know the mortgage market better than you and may be able to source deals for you which more than pay for any fee you have to pay for their services.
GETTING A MORTGAGE IS RARELY IMPOSSIBLE – EVEN FOR APPLICANTS WITH A POOR CREDIT HISTORY.
Except in crazy economic times when lenders lose their heads – such as leading up to the 2007-8 credit crisis – it is not exactly easy to get a mortgage – but neither is it impossible.
THE BASICS OF BUYING A PROPERTY
Buying a flat? What to consider
Raising a deposit
The importance of savings
On the scale of “impossible” to “easy” – getting a mortgage is normally closer to easy than impossible – especially if you get a good deposit together and ensure that your credit record is in the best possible condition.
If you want to buy your first property – the risk of being rejected for a mortgage is probably not your biggest risk.
If you read up on the subject, prepare thoroughly, raise a good deposit and engage a mortgage adviser or broker if required, you will give yourself a great chance of being successful.
So what are your waiting for? Prepare right and getting a mortgage really can be easy!
Read similar blogs HERE.
Get the book to help you raise a deposit or down payment fast HERE.
Rebel Property Coach
My website is: www.rebelpropertycoach.com