There are tons of mortgage application mistakes that people make. These can delay your process or even end up with a rejection. Fortunately, it's easy to ensure your application goes a little more smoothly. So, here are some of the most common issues you may face.
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Thinking You Can't Get One
Before you even apply for a mortgage, you can make the mistake of thinking you will be rejected and place a barrier on yourself. You don't know until you know! A bad spending history or a poor credit score can put you off. But there are options available even if you feel you won't be approved. At the end of the day, a mortgage provider wants customers. And many are willing to accept people with a debt management plan or a poor history if they can show commitment.
Being a Bit Misleading
Above anything else, don't tell porkies on your mortgage application. The processes that mortgage lenders go through are very thorough. And they have checks to see if you are misleading them. You may lie because you feel you might be rejected. But if you lie, and they likely find out, you WILL be rejected! Additionally, you could end up with a note against your name. When this happens, getting credit or a mortgage in the future will be much harder.
Broker Mortgage Application Mistakes
Like anything else, you can arrange a mortgage application yourself. In fact, it's never been easier than it is today. However, this would be a mistake unless you are very experienced. There are many details, a lot of paperwork and costs that need to be addressed. A trusted mortgage broker is your best bet when going through the application process. They can help you gather documents, complete the paperwork and rectify any issues that might pop up.
Misjudging the Associated Costs
Believe it or not, it is not free to apply for a mortgage. Whether you are approved or not, there are some costs associated with the application. These aren't high or anything. But they are there. Some people are surprised when they are charged for an application. So just be aware that you may be charged a fee of between £100 and £300 for your application. Make sure you have the money handy, as this can often tackle people by surprise or cause embarrassment.
Making a Major Purchase
A mortgage lender wants to see that you are responsible for approving an application. Making big purchases that you don't really need won't help your situation. Especially if you do it just before applying for a mortgage. Try to hold off on spending and save where you can. Also, avoid using credit cards and higher purchase services to buy something. You want your credit score to be as high and uninterrupted as possible when going through the mortgage process.
Summary
Thinking you won't be able to get one is one of the biggest mortgage application mistakes that can put you off. There are also costs. And try to avoid making a big purchase beforehand.
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