Everyone would like to get on the first rung of the property ladder but it is a lot easier said than done. Young people especially are finding it incredibly hard to get a lending institution even to consider their application in the first place and then they have to come up with a significant deposit if they are successful. It’s no wonder many young people continue to rent and give their hard earned cash to a landlord who won’t let them do anything significant to the property and maybe won’t even let them decorate how they would like.
It’s also important to remember that signing up to a mortgage is a significant amount of responsibility and it’s probably going to be the single biggest purchase that you will ever make in this lifetime. The first thing that you need to do is to find your first mortgage company, but before that, there are a number of things that you have to put into place to improve your chances of getting a mortgage in the first place. The following are just some of those.
- Look at your credit report – Everyone can gain access to their credit report and so you should take the time to find out what your credit score is to see if you will even qualify for a loan in the first place. It will give you a general idea of whether or not you qualify for a mortgage and if you do, what will be the rates that you will be paying.
- Address any issues – It may be that the credit report you is not entirely accurate and so you can do things to fix that. If it lists any debts that you owe that have already been paid, you can bring this to the relevant authority. It may seem silly but make sure that the credit report is actually yours and the details don’t belong to someone else.
- Lower your debts – If your debts are more than your income then lending institutions will not look favourably upon that. Pay off any debts that you can before you make an application for your first mortgage with any lending institution.
No one is saying that the whole process is going to be easy, but if you follow the above pieces of advice then it should smooth the road a little. It makes more sense to buy your own property rather than to continue renting for many years.