Mortgage application process can be quite complicated depending on our situation. We should be aware that each and every lender can be different and they may have different criteria. We need also to consider a number of factors, such as risk assessments and the current market price at specific locations. Due to specific changes in the market, there could also be a change how lenders assess their customers. If we are being organized and prepared, it should be possible for us to achieve simple application process. The whole process can be made really straightforward if lenders are convinced that we are reliable and financially dependable. There are a few factors that can help us to speed up the whole process. As an example, we could make the mortgage application simpler by having proper credit rating or score. This is an indication whether we have the proper credit worthiness to be approved for mortgage. Credit score is determined based on our previous financial performance, such as whether we are able to repay credit card debts and car loans in a proper manner.
It is important to make sure that we can have outstanding credit score. We should obtain credit score from different credit reference agencies, such as Equifax and Experian. Current level of indebtedness is also important. It determines how many financial agreements and loans that we currently have. Mortgage application can be consisted between 15 to 40 pages, depending on the requirements of the lenders. The application process can be quite different, depending on our condition. Due to the fact that there are many applications, lenders could take only a snapshot of our application. Our application could also be declined based on a number of factors and it’s important that we don’t provide misleading or false information. If we obtain the service of a broker, his job is much more than just for submitting our applications. He needs to advise us on how we can have the biggest chance of being approved.
We should make sure that lenders are able to get full information about us. We should provide a proof of everything about our situation. Proofs of identity may include ID card, driver license, passport, firearm license, workplace ID card, credit card, cheque guarantee and benefits statement. Financial documents that we could provide may include latest credit card statements, bank statement, utility bills and others. We should have a proof that we are really staying in our current address. In some cases, we need to bring the original document, instead of only copies. Lenders may want to examine these documents. Our chance of getting approved is higher if we can guarantee that the monthly mortgage payment doesn’t represent a big proportion of our income. Lenders will also see it as favourable if we are next in the line for pay rise. For people who are self employed, they need to provide a proof of their monthly revenue. We can do this by submitting our bank statement, so lenders will be able to examine how much money that we get each month. We should make sure that people see that we truly have favourable financial conditions.
