5 common mistakes to avoid when getting a mortgage.
Our case checker Hayley Fox has put together a list of 5 common things that can hold up a mortgage application. We look for these kind of issues at application stage and make sure we resolve them or offer an explanation to the mortgage lender.
- Moving money around – Lenders will have to review your assets. Moving funds around can cause lenders to query what these payments are which can slow down the process. If possible, leave everything where it is when you start the process. Make your mortgage broker aware of any situations where you must move large amounts of money.
- Not having enough Proof of deposit – If your deposit is made up of savings, we will require the latest 3 months statements showing a build up of funds. You must have evidence of the full deposit amount so please provide all relevant statements for the savings accounts being used to make up your deposit. The same goes for a gifted deposit, the gifted deposit letter must confirm the full amount being gifted.
- Taking out new sources of credit – Try to avoid taking out any new credit that will affect your credit report during the mortgage process as this may slow the process down and could result in your application being declined.
- Expired Documents – Expired passports or driving licences cannot be accepted by lenders. Before starting the process, make sure all your ID documents are unexpired and confirm the correct name and address. This will ensure the lender can verify your identity and comply with money laundering regulations.
- Not providing enough information – Your mortgage broker will complete a ‘Fact Find’ with you. This gives us all the facts required to submit an application. Some of the questions may seem unnecessary or nosy, but the lender wants to ensure they know who they are lending to. Giving detailed information when completing the Fact Find will speed up the process as we will have the answers to any questions the lender may have and will not have to come back to you to ask for further information.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE.