Maximise Your Mortgage Success Rate with these Three Tips
Buying a home doesn’t have to be stressful – especially if you have the financial support of a local lender behind your efforts. New owners are often greeted with one of two options when purchasing a property. The first is to save up which can take years, if not decades. The second is by applying for a mortgage with a bank, or via a broker.
That’s where the latter option steps up to the mark, but with so many lenders proposing differing terms (not to mention having their own reasons for rejection an application); being approved for a loan can be easier said than done. There are ways to maximise your chances however, and where mortgages are concerned you’ll undoubtedly want to utilise every option to its fullest.
Consider Hiring a Broker
Studies have shown that those that apply through brokers are several times more likely to be approved for a loan. This might have something to do with the relationship between an agent and a bank – but either way, it’s well worth investing in one to improve your chances of approval.
Calculate Your Financial Potential
One of the first things that a potential investor (your bank) will need to understand, is how much you can afford to borrow. If you want to borrow $500,000 then you will need to be able to demonstrate that you are in a financial position to be able to pay it back. A very effective method to give you an idea of your potential, would be to use an online mortgage calculator.
Don’t Limit Yourself
Comparing loans and lenders is one of the best ways to increase your chances of approval – simply down to the fact that if you apply to several financial institutes, then you will have a higher chance of being approved by at least one of them. You could go one step further by taking on the services of a broker to source a variety of options on your behalf.
This will give you a better idea of the types of lenders that you’d like to apply to, without having to take care of the hard work yourself. You could then have your agent approach each bank with your intentions, and sit back while the details are ironed out for you.