While you may think that you will save a lot of money by skipping hiring a mortgage broker Newcastle, you can end up making costly mistakes. Understanding some of these common mistakes is very important because if you do not avoid them, you will reduce the odds that your loan application moves smoothly through the underwriting.
Lying about your debts and income is a good example of some of the most common mistakes that borrowers make. I have seen clients hide some of their properties but do not have a mortgage so that they do not have to include insurance or taxes on these real estate properties as debt. If you want your application to go on smoothly, you should avoid the following mistakes.
Not having enough money
Purchasing a home is very expensive. A lot of borrowers fail to understand that they will need to cover more than just the deposit. They will also need funds to cover the prepaid items at closing such as homeowner’s insurance and stamp duty. Post-closing liquidity is also another issue. Banks require that you have enough money in your account after closing, even after paying for everything that goes into applying for a mortgage.
Unfortunately, a lot of people contact a mortgage broker when they are about to make an offer or sign a contract to buy a home. The best advice is to find a broker at the start of the process to avoid making costly mistakes.
Damaging their credit score
Mortgage lenders pay attention to your credit score. It shows them how likely you are to clear your bills on time. If you have a score that is too low, you will pay a higher interest rate. If it is low, you might struggle to get a lender to loan you the needed mortgage money.
A lot of borrowers damage their credit score during the application for the loan without realising it. It is worth checking your credit score the moment you think about applying for a mortgage.
They change jobs
It could take a month or even longer to close your loan. During this time, you could be tempted to jump to a different job. You need to be very careful because doing this can hurt your chances of closing the loan. Most consumers change their job because they will pay more and they think that when they have a higher income, it will make them more attractive loan borrowers.
However, lenders look at stability. It is why they prefer working with borrowers who have held the same job or who have worked at the same firm for at least 2 years. This is because lenders think you are less likely to lose the job if you have held it for a significant period of time.
If you work with a mortgage broker Newcastle, he or she will advise you not to change your job immediately before applying for a loan or during the application process as this will hurt your chances to qualify for a loan.
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We are award-winning Mortgage lenders with an experience of over 15 years in the finance and banking industry.
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We provide various types of residential loan facilities to our customers.
Our professionals will also guide you to select which option will be suitable for you.Personal loans: If you are going through some difficult times and dealing with various types of loans and need some finance to fulfill your need.
