Once you have gotten past the hurdle of saving the deposit, the next steps you’ll be faced with will be providing the necessary paperwork for your Mortgage Broker in Leicester.
Here we have put together a list of tips and tricks on how to be best prepared for your mortgage process, hopefully making it quicker and smoother.
An up-to-date credit report is something that is vital to the process and should be something that you prioritise. By doing this you’ll make sure that you’re not caught off guard by any previously unpaid payments that could stop you from progressing your mortgage.
Our Mortgage Advisors in Leicester will take a look at which lender will be right for you to go with, so it’s best to make sure all your information is up-to-date and accurate, so that you can be placed with the appropriate one.
You can improve your standing on your credit report by making sure that you are on the voters roll and cancelling any old or unused credit cards that you still have in your name.
You’ll need to prove to your Mortgage Broker that you are exactly who you claim to be, by providing them with photo ID. You have the option of either using a Driving license or Passport.
If you are choosing to use your Driving Licence for your proof of address, you won’t be able to use it for your proof of ID and will have to use something else.
For those who are currently working within the country and using a Visa, then this is something you will also be required to provide.
As touched upon in the previous point, you will also need to provide your mortgage advisor with a proof of address. If you are using your Passport for photo ID, you will be able to use your Driving License for this.
Otherwise you can use either a utility bill or a bank statement that has been dated within the last 3 months.
The bank statements you provide will also help to prove how much money you earn, as well as giving some insight as to what your regular spending habits are like.
This is something that again, highlights just how important it is to prepare ahead of time and be careful as to how much money you’re spending and what you’re spending it on.
Not all mortgage lenders will want to see your bank statements, though the majority will, so it is important to make sure that you have these to hand just in case.
Whilst you may have already saved up your deposit for the property you’re looking to buy, you will still have to provide proof of how this was saved for anti-money laundering purposes and demonstrate that you have everything in place for it.
A useful tip that we would suggest here, is to make sure your finances are stable and in one place, so that when it comes to the audit trail, everything is simple and can be checked over quickly.
To show the mortgage lender that you can in fact afford their mortgage payments, you will need to prove your income.
For customers in regular employment, as touched upon before, you’ll need the last 3 months payslips. On top of this though, some lenders will want to see the most recent P60.
Lenders may also consider various other factors such as overtime, commission, bonuses and any earnings you have gained from other employers.
If you happen to instead be a self-employed mortgage applicant, then you will also need the help of your accountant who will obtain for you, your last 2 or 3 years proof of earnings.
For those of you who submit your own accounts, we will be more than happy to advise you on what you’ll need to obtain from the Government gateway.
By creating a solid plan of what your budget will be, you will be able to gain a wider perspective of where you will need to spend your money and what everything is.
It is best to make a list of things such as your council tax, utility bills, and anything that you have to regularly spend money on, such as food and drink. Doing this will help to determine how much disposable income you have overall once those payments have gone out.
If you are struggling with this, then we would be happy to send you a budget planner template so that you can get started.
In summary, preparation is crucial for a First Time Buyer in Leicester to get their mortgage sorted as quickly and efficiently as they possibly can, and this will only be made simpler by seeking out expert Mortgage Advice in Leicester.
The quicker you put in the time and effort to collect all of the essential information you need, the easier it will be to speed up your process and get an extra step further to achieving your mortgage goals.