After saving for months/years, you are now at a point where you can put all your hard-earned savings down for a deposit on a flat/house. Now it’s time to get mortgage ready!
You might be a First Time Buyer in Leeds stepping into the mortgage world for the first time or you have experience in the home buying journey as a homeowner and are looking at moving home in Leeds. Either way, our tailored service would prove beneficial. Below is some helpful information that will help you have a grasp on what the mortgage process entails and provide you with information on what you need in order to be mortgage ready for your application.
Firstly, getting Mortgage Advice in Leeds should be at the top of the list. Having an experienced Mortgage Advisor in Leeds by your side guiding you through the process, advising the best route for you in terms of your personal and financial circumstances can be very beneficial.
If you are looking at the amount you may be able to borrow for a mortgage and the amount it will cost, seeking Mortgage Advice in Leeds can help indicate this. Before your Mortgage Advisor in Leeds can begin the process of looking into competitive mortgage deals for you, affordability and a borrowing capacity assessment will need to be carried.
A Mortgage Broker in Leeds, like ourselves, can provide a helping hand throughout the process as well as support you in getting the basics prepared for your mortgage application. In order for your Mortgage Advisor in Leeds to understand your financial position from the very beginning, they will request an up-to-date credit report.
At the start of your mortgage journey, you will need to obtain an agreement in principle. This should be your first priority because without it you won’t be able to make an offer on a property.
Here at Leedsmoneyman, we work hard to provide you with a fully credit-checked agreement in principle sorted for you in 24 hours to take some weight off your shoulders. We would need you to prove who are you are by providing the following:
It’s good to be organised as there is a lot of paperwork you will need to collate. Therefore, it’s best to create a file for yourself and start collecting this in advance.
In order to start the mortgage process, you will need to provide some form of identification. This needs to be a photographic ID like a Driver’s License or a Passport.
As well as the aspects mentioned above, you’ll need concrete evidence that you live at the address that you say you do. Evidence you’ll need could be a utility bill or original bank statement dated within the last three months.
One of the most determining factors that can massively contribute towards whether you’ll qualify for a mortgage or not is your spending habits. Your bank statements are something your lenders like to take a look at because they can get an idea of what goes into your account and what goes out. This provides an insight into if you’ll be able to manage your monthly mortgage payments as well as your other expenditures.
One of the main things that lenders look for on your bank statements is gambling transactions. This factor can cause risk further down the line which is why lenders will look at if you do frequently gamble and will be cautious towards this. If you are constantly gambling, lenders won’t risk the chance. Another thing lenders will see as a drawback is if you are regularly going over your overdraft limit or if your direct debits bounce consistently.
For anti-money laundering purposes, you will need evidence that you have the funds in place for the deposit. It’s best that you try not to move the monies around your various accounts too much because it will make evidencing the audit trail more challenging. Your savings building up is something lenders like to see, therefore, you’ll need to account for any extensive credits in your accounts.
There has been a recent increase in the popularity of gifted deposits, we have seen that they contribute towards many people’s 5%. Usually, gifted deposits are generally from a family member or friend of the applicant. In order for these funds to be evidenced properly, the “donor” of the funds will need to sign a letter confirming and evidencing that this is a gift and not a loan.
Proving your income is one of the most important things when it comes to affordability. Employed applicants usually will need to evidence this through the last three months’ payslips and most recent P60. Regular overtime, commission, shift allowance and bonuses is another thing lenders can factor in. Whereas self employed will need help from their accountant by requesting your tax year overview.
Looking into an estimated amount of your anticipated outgoings after you move house can always be helpful. Furthermore, you can work out an estimation of how much the council tax and utility bills will be. On top of this, you can work out regular expenditures like food and drink. Taking all these into account will show how much disposable income you have available to your mortgage.
When applying for a mortgage, it can be a challenge if you are doing everything on your own as things can become complicated. With a Mortgage Advisor in Leeds being there every step of the way can be very helpful. Impressing your lender by showing them you have done all you can within your power to get prepared for your mortgage application can be challenging. We can assist you with this by providing the best impress of you to your lender and we would have everything prepared for you within 24 hours of free mortgage consultation depending on your circumstance.