mortgage tips

Four Top Mortgage Tips for First-Time Buyers

A mortgage is one of the biggest financial commitments that you’re ever likely to make, so it pays to find the best deal you can. Often, however, securing any mortgage at all is half of the struggle. You need to be happy with the terms of the agreement you take out, but your lender also has to be happy lending to you in the first place.

To make sure that your application gets accepted, here are four top tips to help you out…

Tip One: Credit Scores are Important

To assess your initial chances of getting your application accepted, it pays to get a copy of your credit report from a referencing agency. This will give you an insight into what lenders will see when you approach them. If it doesn’t look good, then the wisest course is usually to hold off applying for a mortgage and spend some time trying to improve it. This is a lot easier than you might think; little things like adding your name to the electoral roll and closing inactive credit card accounts can be just the boost your credit score needs.

Tip Two: Stick with the Saimagesrg45th45qme Job

If you’re considering looking for a new job, whether this is because you’re unhappy at work, want to be closer to where you live or need a higher wage,then it’s a good idea to hold off until you have a mortgage agreement in place. The majority of lenders won’t consider you unless you can show that you’ve been in the same job for a decent length of time – usually, around six months.

Tip Three: Try to Reduce Your Debts

One thing you can guarantee that lenders won’t want to see on your application is outstanding debts. This means that a little planning in advance is often necessary in order to have your application granted. If you know that you owe cash on a credit card or have unpaid loans, then spend a few months to a year doing a little housekeeping and trying to get them in order. If you can do this, you’ll not only be improving the results of your lender’s affordability calculations, but also demonstrating that you can manage money responsibly.

Tip Four: When It Comes to Deposits, the Bigger the Better

Before you apply for a mortgage from a lender like Saffron Building Society, it pays to make a concerted effort to save towards a deposit. The larger the deposit you have at your disposal, the greater the choice of mortgages that will be available to you. Lenders offer their best rates to those who have a hefty sum of money behind them, and you’ll also find that you qualify for better deals and can secure lower monthly repayments.

Follow our top tips and you’ll have your perfect mortgage and the home of your dreams in no time!

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What Are Some Typical Eligibility Requirements For Mortgages?

If you’ve ever been denied financing for a mortgage you know how deflating it can be. You may feel ready to move onto the next step and own your own home, but lenders don’t see you as a good investment for whatever reason, and it’s not a nice feeling at all.

However, before you get too bent out of shape about it, it’s probably a good idea to look at the situation a little more analytically and less emotionally. Emotions tend to get in the way when you’ve been denied for a mortgage. Keep in mind it has nothing to do with you personally, and it’s all about business.

A Business Decision

When a lender decides not to approve your mortgage, it is a business decision. It’s easy to get caught up in the thought of big corporations flexing their muscles and squashing the little guy, but think of it as if the lender is a person. If someone lends somebody else money, they want to do so feeling confident that they’ll get that money back someday.

You would be reluctant to lend someone money if you weren’t confident they could pay it back, and a big lender is the same. If your credit score or a handful of other factors aren’t what they’d like to see, you may be denied. And remember, the numbers, current situation and your history are all they have to go by when making a decision. Take a look at some of the typical eligibility requirements to make sure everything is in order.

Good Credit Score

A decent credit score is usually one of the requirements when looking for a mortgage. It doesn’t have to be perfect, but each lender will have a number in mind that they’d like yours to be before they give the green light. Credit score is affected by things like not paying your bills and debts, bankruptcies, consumer proposals and similar things.

Income

This one may seem a little obvious, but steady income is definitely a must if a lender is to believe you will make good on your mortgage. And the longer you’ve been at a particular job the better. It’s never a bad thing if you make a lot of money, but your income in relation to how much you owe is more important. A high income with even higher debts won’t do you any favors.

Low Debt Levels

And that is why your debt levels should be low in comparison to your monthly income. Your debt to income ratio must meet the current requirements or a lender will determine you can’t add to that debt amount and still make all your payments. Remember, they are in the business of making money.

Minimal Credit

Too much debt can put the brakes on your mortgage approval and so can too much credit. If you have multiple credit cards or lines of credit, they may be seen as your ability to run up a large amount of high interest debt. You might be the most responsible person around and have no intention of ever doing that, but the lender doesn’t know that. All they see is that you have the potential to use lots of credit. Talk it over with your mortgage broker ahead of time and consider closing a few outlets if necessary.

Are You Extended?

Not being a co-signer on anyone else’s loans is often a factor that results in a mortgage being denied. Even if your child or sibling or friend always pays on time and is in good standing, if they default that lender is coming after you for the balance.

It’s nice to help people out, and if all of your numbers are what they should be you may still be able to get a mortgage, but it is definitely something to consider. If you already have a home and don’t plan on getting another, you have nothing to worry about.

Create a Strategy

One of the keys in the mortgage approval business, is figuring out any potential issues before you dive in with both feet. Don’t just assume that everything is great because you have a job and don’t have a pile of debt. Take a look at possible sticking points and then address them prior to applying for a mortgage.

If it seems like some of the more conventional lenders have an issue with you, think of using a broker who has access to many different lenders. A good mortgage broker usually isn’t bound by certain products or systems and they can often find you the deal that you want.

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The author of the article is Jeremy Benson. He has been writing about finance, mortgage and Canadian law since 7 years. Blogging is one among his greatest passions. Follow him on Twitter@jeremybenson19.


How Can I Improve My Mortgage Credit Report?

There’s a new buzzword around town. And that buzzword is “mortgage credit report.” And it’s definitely in your best interest to pay attention to this new buzzword. Because if you ever hope to buy a home it is vital to know how important these mortgage credit reports truly are.

Mortgage credit reports explained

mortgage_card_explainedSo let’s start off with the basics, shall we? In order to recognize how important mortgage credit reports are, you first have to understand what they are. They really are a basic concept. When mortgage companies are considering you for a mortgage loan (and deciding what interest rate they will charge you), they want copies of all three of your credit reports. If your husband/wife will also be on the loan, they want copies of all three of their credit reports also. That equates to pages and pages to analyze in their loan acceptance process. That takes too much time.

So, in come Mortgage Reporting Companies. Instead of your mortgage lender having to pour over these endless pages of credit reports, they hire these mortgage reporting companies to do that for them. Mortgage reporting companies order copies of your credit reports and consolidate them into one report. This consolidated report created by the mortgage reporting company is called, you guessed it, your mortgage credit report. It is the information found in this report that is used by mortgage lenders to decide your acceptance or denial for your loan, and of course your interest rate. Everything to do with your mortgage loan rests on the information found in your mortgage credit report.

Ways to improve your mortgage credit report

Now that we’re all on the same page of understanding the importance of mortgage credit reports we can get down to the reason why we’re here: discussing how we can improve these reports. First things first, you are probably wondering how to access your mortgage credit report. As of right now, the only way for you to access your mortgage credit report is if you’ve already been issued a mortgage loan. If that is the case, then your mortgage credit report should be included with your closing paperwork.

If you don’t already have a copy of your mortgage credit report, don’t fret. You can start by accessing copies of your normal credit reports from the three major credit bureaus (Equifax, Experian, and Transunion). If you are wanting to improve your mortgage credit report this is probably your best bet anyway, because the information found on your mortgage credit report is pulled from your major credit reports anyway.

Now on to improving these reports. There is no way to go about particularly improving your mortgage credit report on its own. That is because, as explained above, the information found on it is pulled directly from your other credit reports. So if you want to improve your mortgage credit report, then you would go about the same processes and steps that you would use to improve your normal credit reports and scores. As your normal credit reports improve, then so will your mortgage credit report. So, the typical steps that you would use to improve your credit, including paying your bills on time, paying down balances, working with a credit repair company if needed, etc, will all also help to directly improve your mortgage credit report.

That is the good news! You don’t have to take any extra separate steps to improve your mortgage credit report. It really is that basic: if you want to improve your mortgage credit report, then start by focusing on improving your basic credit reports. As you see improvements in your normal credit reports, your mortgage credit report will simultaneously improve. This new and improved mortgage credit report will help you to find easier acceptance on a mortgage loan, as well as lower interest rates for your new home.

This article was contributed by Chase Sagum. Chase writes about credit repair and personal finance issues/opportunities.

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Tips to Consider When Choosing A Professional Mortgage Broker

Tips to Consider When Choosing A Professional Mortgage Broker

The decision to use the services of a professional mortgage broker is a wise one. A broker can assist you in shopping around to find the best loan terms possible for your upcoming purchase and refinance loan request. This can help you to save money on your loan over the long run. Further, a broker can also walk you through the entire loan process to ensure that you enjoy a smooth, simplified transaction. As beneficial as a broker can be to your purchase or refinance loan request, ultimately, finding the best professional to work with can enhance these benefits. When selecting the right broker to assist you, keep a few key factors in mind.

The Broker’s Specialty

Applying for a mortgage loan may seem like a cut-and-dry process on the surface, but the fact is that there are a wide range of loan programs, property types and special considerations that make many loan requests unique. Consider, for example, that the loan request of a person who has excellent credit and who is refinancing their home may be far different than the loan request of a person with mediocre credit who is buying a duplex home to use as an investment property. Some brokers have specialized in certain types of loan requests, and you may find it beneficial to work with a mortgage broker whose specialty is suited for your loan request.

The Broker’s Experience and Background

While there typically are licensing requirements in place that must be met before a person can become a broker, the fact is that some brokers have considerably more experience and education in this area than others. For example, some may have a degree in business or finance. Others may have a real estate license, or they may have a decade or more of real-life work experience in the industry. Choosing a broker with experience can provide you with the best results possible from your loan request. You can typically research a broker’s experience, educational background, industry certifications and more online. They may have a social media account that has details about their background, or you can visit the company’s website for specific information.

Friendly and Helpful Rapport

Perhaps one of the most significant factors to consider is the broker’s desire to help you find the best loan possible. While it is unfortunate that some brokers will only make a minimal effort to find a loan that meets your needs, others will go above and beyond to ensure they find you the best loan possible for your needs. This involves taking time to listen to your needs and to learn more about your loan request. By looking for a broker that takes the initiative to service you during the initial stages of the loan process, you can more easily find comfort in knowing the broker will walk you through the entire process with the same attention to detail.

There are numerous mortgage brokers who you can choose to work with for your purchase or refinance loan request. While you could draw a name out of hat, you will enjoy better results throughout your loan process when you keep these tips in mind and make the best choice possible.


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