Once you’ve saved up enough for a housing deposit, the next step is to prepare for your mortgage application so you are in the best position before starting your mortgage process. First Time Buyer in Hull like yourself, will find this guide beneficial to help you understand the progress with your mortgage application.
This article features some useful Remortgage Advice in Hull tips and tricks too, to help fast-track your mortgage application.
During the preparation process, make sure to obtain an up-to-date credit report. Having an up-to-date credit report is essential for your mortgage application; ideally, you should try and get yours arranged before contacting a Mortgage Broker in Hull. Your Mortgage Advisor in Hull will review your report before passing it on to a suitable lender.
Another thing that you should look to obtain is an agreement in principle. These are handy, especially when making an offer on a property!
If you want a fully credit-checked agreement in principle within 24 hours of your application, you should get in touch with us. As an experienced Mortgage Broker in Hull, we aim to try and turn around an agreement in principle within 24 hours after your free initial appointment.
Make sure to provide a photo ID to provide you are who you say you are. An alternative can be a Driving license or passport. You can’t use a Driving License for ID though if you are also using it for proof of address. If you are a non-UK national working over here on a Visa, you’ll need to produce that too.
You will be required to prove where you live. This is usually in the form of a utility bill or bank statement within the last 3 months.
Your bank statements will reflect your income and regular expenditures. Lenders don’t like excessive gambling transactions on your account and they will also not be happy if you keep going over your overdraft limit or have direct debits bounced.
Regardless of whether lenders ask for your bank statements or not, they want to be confident that you take your finances seriously. The bank statements which you produce should consist of your salary going in and your bills going out.
A vital part of the mortgage application is evidencing your deposit for Anti-Money Laundering purposes. Make sure not to move finances around your accounts too much as this will make it a lot more difficult and may delay the process.
Lenders like to see that you are saving your money responsibly, but that doesn’t exempt you from having to account for any large recent deposits in your accounts. If you have been gifted a deposit, then there will need to be written confirmation stating it’s a non-refundable gift.
If you’re in employment then you’ll be asked for the last 3 months’ pay slips, though some lenders will also ask for your most recent P60. Lenders will take into account regular overtime, commission, shift allowance, and bonuses. Additionally, extra earnings may also be considered with some lenders such as part-time jobs or self-employment.
We have dealt with many applicants who are Self Employed in Hull. If you are a self-employed applicant then you may mean you will need to acquire your Accounts’ help to request your last two- or three-years’ proof of earnings from the Revenue. If you submit your own accounts then feel free to get in touch and we will be happy to advise you on how to go about downloading from the Government Gateway.
By working out an estimate of your expected outgoings after you move house means you can gain an idea of how much disposable income will be available to you to pay your mortgage after such things as regular expenditures, council tax, and utility bills have been paid out from your account. To help you with this, we are happy to send you our version of a Budget Planner to get you started.
As seen, there are many steps you must take in order to prepare fully for your mortgage application deeming it not an easy feat but it doesn’t mean you should worry. If you approach the mortgage application with due timing and an organized matter along with a Mortgage Broker in Hull, you will be in safe hands.