The more prepared you are for that first meeting with a mortgage lender the better chance you have of getting that first mortgage.
Here are some tips that could help you impress your mortgage lender at that first meeting.
Have the right documents
If you can show you’re a low risk to a lender, then they’ll be delighted to give you their business. The first way to impress them is by having the right documents. This is evidence showing that you’re worthy of a loan. Make sure you turn up with:
Proof of address (driving licence, utility bills dated in the last three months)
A valid passport
Bank statements and payslips for the last three months
Proof of deposit (i.e. a bank statement)
Latest P60 tax form
Maximise your credit score
Your credit score is a major part of how you’re going to be judged by anyone lending you money, so keep your credit score healthy by paying all bills on time and paying off debts, whenever possible. Using credit can also be worthwhile. Taking out credit and showing that you can use it responsibly can impress more than not using any credit at all.
Proof of income
For proof of income, you’ll show your payslips. Check all your payslips are in order and organised correctly so it’s easier for your lender to view them.
Keep your spending in check
As well as asking about your income, the lender will ask about your outgoings. In the months preceding your meeting, it could be wise to get rid of any outgoings you could live without for a time.
Being on the electoral role is essential for a good credit score. Don’t underestimate its importance and make sure you’re on it.
Have enough money for the deposit and costs
Be realistic and double-check you have enough money for the deposit. For first-time buyers of new houses, there are some fantastic government schemes available such as Help to Buy. Also ensure you have enough in reserve to pay additional fees that can quickly add up, such as survey costs and stamp duty.
Before you make a firm offer, get a decision in principle
So you’ve impressed your mortgage lender and been offered that first mortgage. Yet, before rushing ahead and accepting what’s offered, realise that events can move quickly the moment you say yes. It may be best to get a decision/agreement in principle, then get other details sorted out through your solicitor before agreeing. Being a first-time buyer of a new house is destined to be a learning experience but through organisation and preparation you can always be one step ahead.