Information For Anyone Planning To Apply For A Mortgage Plan
To purchase a home is expensive and not everyone has the resources to buy one in cash
. Fortunately, various lenders offer mortgages to help people afford a home of their own.
Often the best deals are offered by building societies and banks. If you have a previous mortgage or savings account through a building society, approaching them should be your first step.
Banks can be hesitant to grant a mortgage to someone if they have had trouble making their payments in the past. If you have no luck with traditional banks you may want to check with a mortgage broker or an estate agent who can refer you to a building society.
Always ask up front if there will be a charge for this introduction. Also inquire if it will obligate you to take on an expensive form of mortgage.
When a broker is unable to get you an acceptable mortgage they are only allowed to charge you a fee of $1. The broker can charge for any work carried out on your behalf such as surveys.
To get the lowest possible monthly payment, it pays to try for a capital repayment mortgage from a building society. If you have a job and want a mortgage, you should write to a lender. Tell them you would like a capital repayment mortgage. Include your gross income and your partner's if you are buying the house jointly. Be specific about the breakdown of the income.
Be sure to include your base salary plus any money earned from overtime, bonuses and expected pay raises. Don't forget to include the amount of money you plan to put towards the purchase price.
Make clear in your letter that you have done the math. Describe your calculations so that the building society will know you will be able to manage your monthly mortgage payment along with your other bills.