Buying a home and applying for your first mortgage is no easy feat in Bury St Edmunds. Here’s what you can expect and how a good mortgage advisor in Bury St Edmunds can help you have a good experience.
Lenders approach mortgage advisors with much more scrutiny than they have in the past. They are checking out your income and financial habits and want to make sure you will be able to pay your mortgage in the even that interest rates rise. They need to know that you can afford the mortgage now and in the future.
You will need several documents when you are applying for a mortgage and those documents may vary between different mortgage companies. Here are a few basic suggestions on what a mortgage advisor Bury St Edmunds may ask for:
If employed:
• Latest P60
• 6 months worth of bank statements
• Most recent 3 monthly or 8 weekly payslips
If self-employed:
• Tax returns from the past 3 years
• 6 months worth of business and personal bank statements
You can also expect a lender to request your most recent mortgage statement or proof of rental if you bank statement does not already display that information. If your income is not consistent, it is likely that you will be asked for more documentation.
When you are requesting a home loan, your lender will absolutely want to know about your debt to income ratio. How much do you spend each month? They may ask you the following questions:
What are your current monthly outgoings?
What kind of recurring payments do you make each month? These include but are not limited to loans and credit card bills.
Do you have any dependents?
How many people are depending on your income for their survival? This may include your spouse, children, an elderly parent or a disabled family member.
Other Expenses?
Yes, they are going to ask you about your sky bill, mobile phone and your vehicle bills. The mortgage advisor will look over your bank statements and don’t be blown away when they ask you about various expenses.
After looking over your cost of living, they will determine how much income you have available to spend on a monthly mortgage payment.
Credit Score
When you apply for a loan or any type of credit line, your credit history will determine the final word. Mortgage advisor will refer to your credit score as a part of the process and will question you about any previously missed payments. Be sure to keep up with your credit score and check it for any errors before you begin the process of applying for a mortgage. You don’t want to lose out on a great rate because something on the report is not correct.
In order to find the best mortgage for you, be sure to find a mortgage advisor Bury St Edmunds that is ready and willing to find something tailored to your needs. Get mortgage advice from a great financial advisor who can scour the market to find the best deal.