subject: How to apply for a mortgage? [print this page] How to apply for a mortgage? How to apply for a mortgage?
Are you ready to get on the property ladder and finally become a homeowner or are you just considering getting a mortgage and simply search for information? Either way, applying for a mortgage is a big deal and it's better to prepare yourself before seriously looking for your dream house.
Check and improve credit score Credit score
Your credit history and the credit score which results from it will be one of the major factors determining what property will you be able to buy and how high your interest rates will be. Before getting fired up it's better to check your credit score to set realistic expectations. It's easy to check your report for free with one of the credit reference agencies. You only need to sign up for a trial account and, should you find the extra credit protection services unnecessary, cancel it before it turning into regular subscription.
Learning about your credit score will give you the option to either try and improve it, or use the existing one and go straight into the second step which is getting in touch with potential lenders.
Consult mortgage brokers and your bank
Once you're happy with your credit score make an initial contact with your bank and enquire about potential amount you would be able to borrow should you find the right property. It's best to start with your bank because the chances are it will be most generous lender, especially if you've been a customer for years and do not have debt problems.
Asking mortgage brokers, on the other hand, could get you great, time-limited deals which are not available through other channels.
Search for the property
Once you are aware of your financial capability the search starts. There are numerous places where you can look for properties available for sale. Don't limit yourself only to the most popular websites though, there may be great homes advertised in small local agencies. If you're searching for a property in a particular area go ahead and scout it you may come across small shops which market homes not advertises anywhere else.
Finalize the transaction
Contact the agency or private owner, depending on who's behind the advert. It never hurts to negotiate the price. A few minutes of conversation could potentially save you a few thousand off the asking price. When the price has been set get back to your chosen lender and ask them go go ahead with the application process. Just please remember, before you sign anything make sure you read all the small print. Dozen pages of jargon may not seem like a very exciting read but at the end of the day, it's a contract binding you for years to come and you don't need any surprises down the road.
