In order to look more appealing to lenders, you should try to save as much as possible for your deposit. The more you save, the less you’ll need to borrow which also makes paying off your mortgage easier! The standard deposit for a home is 20%, however there are options for lower deposits if you’re considering a new build for example.
2. Pay down your debt
If you have any high-interest debt like credit cards or personal loans, you’ll have more success in your application if you pay this off before applying for a loan. It’s a good idea to sort out any unpaid or late debts that might impact your credit history.
3. Proof of income
Lenders will be looking at your employment history and how much you’re currently earning. They will assess if you’re a stable investment and if you have enough income to cover your loan without getting into financial trouble. They will usually ask for a few months of payslips as proof of income and match this against bank statements to check for any discrepancies.
4. Bank statements
Lenders will look at your personal bank and credit card statements to assess whether you can afford to service the loan and how much they should lend you. Be prepared to have your expenses come under scrutiny. They will look at your statements for the past few months and look for missed payments, unarranged overdrafts, and a surplus of expenses.
The fewer dependents you have, the more likely you are to get pre-approval. Children significantly add to living costs so fewer children mean a higher chance of approval. No kids at all? No worries. If you do have children, this doesn’t mean you won’t get lending, it just means you might need to put in a bit more work to get it across the line.
If you’re not sure where to start to get your first home sorted, our expert Haven mortgage team can help! Just click the button below and we’ll be in touch to have a free, no-obligation chat about how you can make your first home a reality.
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