Getting a mortgage is something that most people have to succeed at if they want to buy a home. It is a big part of home ownership and can be a huge hurdle. However, there are things that you can do which will help you to be more likely to be accepted for a mortgage.
Have a stable job
One huge influence on whether you will get a mortgage is your job. You will need to be in a permanent job and have been there for at least three months normally. You need to be through any probation period and be a permanent member of staff. This will show the lender that you have a secure income and so will be able to afford the repayments. Although it is possible to get a mortgage if you are self-employed, contracting or freelancing your options are very much smaller and the mortgage will be a lot more expensive. You will also find that you will be more likely to be turned down if you do not have a stable income.
Earn as much as you can
It is wise to make sure that you are earning as much as possible when you apply for the mortgage. So, before you apply see whether you can get a pay rise, do lots of overtime or try for a promotion. Do everything you can so that your pay slips are really high. This will impress the lenders and therefore they are more likely to allow you to have the mortgage.
Spend as little as you can
It is a good idea to also reduce your spending in the months leading up to your application. The lenders are likely to want to see your bank statement to see whether you can afford the repayments. This is something that will set you in good stead for when you have the mortgage as well because you will need to make sure that you have enough spare money to keep finding to pay the mortgage repayments. It could be easier to cut down than you think. With the motivation of being able to own your own home in your head, this should help to motivate you. If you compare prices on everything that you buy, you could find that you will be able to save money without going without anything. However, if you can buy less things as well, you will be able to save even more. Think about every item that you buy and ask yourself whether you really need it, if you do this while reminding yourself of your goal it could help you. You might be able to start buying more once you take on the mortgage as your current account will not be scrutinised after that.
Save a large deposit
You will need to save a deposit for most mortgages. The lender will want you to pay some of the money towards the property, both to prove that you are able to manage your money well and be disciplined with your spending and to provide a buffer so if the house decreases in value. You will normally have a set amount that you have to save, perhaps 5%, but it is always a good idea to aim higher if you can. Not only will that mean that you can show the lender that you are capable of big savings, but you will also not have to borrow so much money, which will make your bad credit loan cheaper and you will be paying interest on less money.
Pay off your debts
Another worthwhile thing to do which would help you is to pay off other debts that you have. This will mean that you have less money coming out of your account each month in most cases as you will be making regular repayments on those debts. If you can stop those, then you will be looked on more favourably by the lender. You will also be able to more easily manage the repayments, which will advantage you each month as well as making your account look better so increasing your chances of getting the mortgage.
Have a good credit record
A credit check will be done and if you have a stable job, pay off your debts and are spending sensibly then this will go very much in your favour. However, it is still worth a check to make sure that everything looks good. There might be things that you have forgotten about or incorrect items on the credit report that you will want to change or sort out before you apply.
This may seem like a lot of big things to sort out. However, if you can get them done before you apply it can make a huge difference to your chances of getting a mortgage. Most of them will also help you in other ways, by making it easier for you to make the repayments on the mortgage.