Unless you are lucky enough to be able to purchase your new home in cash, it’s likely that your journey towards home ownership is going to start with a visit to a mortgage broker or lender. If this sounds like you, be sure to prepare for this meeting to make the best first impression. After all, it could determine whether you can buy a house or not.
Find out First
The first thing that any lender or broker will do is to view your credit history and score. However, they are not the only ones with access to this information. Speak with your credit reporting agencies or boards and obtain a copy of your credit information.
Once you have this, thoroughly inspect the information and keep your eye out for any irregularities. If you see an address that you don’t recognize or a declined credit application you don’t remember making, flag these with the relevant agencies and have your records corrected before your meeting.
When you visit your broker for the first time, your credit history and score should accurately reflect your financial situation.
Understand Your Position
Once your broker has an understanding of your credit history, they are going to want to know about your current financial situation. This means an outline of your income streams and expenses.
When preparing your income stream information, be sure to include any expected increases such as bonuses, contracted pay raises, or compounding interest or profits on shares.
When it comes to expenses, information such as how often you visit local hair and styling sessions , or your weekly grocery list isn’t important. Instead, information regarding loan repayments or credit and store cards is what your lender will want to see.
Collate the last 12 months worth of statements for each card for your broker to inspect. To improve your application, be sure to highlight any instances where leftover funds were used to make additional payments.
Choose the Right Time
If you have store cards or repayments which are due to complete soon, consider waiting to lodge your application until they have been recorded as paid. While it may mean holding off for a couple of months longer, it is one less owning debt on your credit report.
Similarly, if, when gaining an understanding of your current and projected financial situation, you are not comfortable that you can take on a mortgage, wait until your situation changes. A mortgage is a big commitment and failing to see one to completion can be unnecessarily damaging to your credit report and score.
Follow these tips and you will be on your way to a successful meeting with your mortgage broker. During your first meeting, remember that there are a number of brokers and lenders to choose from. If you don’t feel comfortable with an offer, don’t hesitate to keep looking.