5 Common Mistakes to Avoid When Applying for a Mortgage
Not Checking Your Credit Score
Don’t skip checking your credit score – lenders assess your score to decide on the terms of your loan, and whether they’ll grant you an offer at all. We have a link to Check My File in our bio which will give you access to your credit score across Experian, TransUnion, and Equifax.
Not Comparing Lenders
By taking the route of going to your bank, you may end up missing out on better rates. A whole of market mortgage broker will have access to thousands of mortgage products, and will be able to find the best rate for you.
Forgetting Additional Costs
Don’t forget that it’s not just the deposit you need to pay for. You also need to budget for solicitor fees, surveys, potential taxes, and other costs that can add up quickly.
Making Big Purchases Before Approval
Hold off on any big purchases, or taking out any other credit whilst waiting for your mortgage to be accepted. New loans or bigger buys can affect your debt-to-income ratio and could delay the process.
Overestimating What You Can Afford
Whilst it may be tempting to take out the biggest loan offered to you, taking on too much could impact your future finances. We always work with our Nook family to find the amount that they will be the most comfortable with.