3 Quick Tips To Help First-Time Buyers Obtain A Mortgage

If you're a first-time buyer looking to purchase your first family home, the buying process can be difficult. Without doubt, the most challenging part of the process for first-time buyers is sourcing a suitable mortgage. To help you with this, consider the 3 tips below:

Make Sure You Know Your Budget

When you're looking for a mortgage, it's important not to lose focus. Buying a new home is an extremely exciting time, especially if you have managed to find the perfect home for you and your family. However, it's important to keep a calm and level head before approaching prospective lenders.

In recent years, it has become more difficult to secure a sizable mortgage. As such, it is important that you have your finances in check and are able to show prospective lenders that you are able to properly manage a budget. When you speak to different lending companies, your financial history will be scrutinised, and you must be able to defend your previous credit history. Therefore, it's important to take time to sit down and analyse your outgoings to ensure that you are able to answer any tricky financial questions that come your way.

Boost Your Credit Score

It's well known that there are no quick fixes for a poor credit history, and it takes time to build a solid track record. However, there are a few quick things that you can do to boost your score by a few points and ensure your report looks as good as possible when viewed by lenders.

The first thing you should do is ensure that your address history is correct. This may not seem like a big deal; however, it can actually have a significant effect on your credit score and may be enough for lenders to refuse you a mortgage.

The second thing you need to do is check your credit report for missed payments. If you do have missed payments, contact each creditor and ask them to add a "correction note" to your report. These corrections outline the reasons why you missed your payments, allowing future lenders to fully understand your current situation.

Finally, if you don't have a strong credit history, you should at least try to have one or two years without any blemishes prior to applying for a mortgage. Although this won't drastically change your score, it will show lenders that you are making an effort to change your financial situation.

Eliminate Credit Applications

In the year leading up to your mortgage application, do not apply for any other sources of credit. Mortgage lenders will look at your credit history to establish how frequently you look for credit sources, and frequent applications can damage your reputation. This means that all credit applications, ranging from store cards to vehicle loans, should be eliminated. By eliminating all credit applications, you indicate to lenders that you are not desperate for credit and are able to suitably manage a budget without seeking help from lenders.