There’s never a bad time to think about the future, even if you’re not ready to buy at the moment, it’s still useful to think about, after all, if you don’t plant the seeds now, then you may never get the home of your dreams; so find out how to land great mortgage quotes.
Improve your credit rating
The better your credit rating is, the better the interest rate will be, but that’s bad news if your credit score has taken a hit in the last few years. Don’t despair! Even though your credit score is low at the moment, there are some ways to improve it fast and tidy up your financial health.
First of all, make sure you are a registered member of the community, make sure your current address is on all your important documents and that you are registered to vote. If you have debts, make sure they are paid on time and consider using a high-interest credit card carefully.
Save a substantial deposit
We all know the deposit is important when you buy a home; that’s because the more you can put down, the less you pay each month – it also affects the amount you pay overall since your interest rates will be lower. However, it can be tricky to save a deposit when you’re paying rent.
If you’re serious about saving a home deposit, you need to change your lifestyle; you need to stop partying so often and change the way you treat yourself. It can take a bit of head-scratching but what you find is that life can be lived quite comfortably while you save up.
Gather relevant documents
Employment status and history are also important when you’re trying to land great mortgage quotes. Lenders need to know that you are in steady employment and that you have documents to show that that you can afford the type of home you want. It’s helpful to get these in order.
If you are a salaried employee, the lender will probably want to see tax documents for the past two years; they might also contact your employer to confirm the length of time you have worked there. Self-employed people have even more documents to organise and may pay higher rates.
Reduce your debts
Debt also plays a key role in mortgage quotes; lenders need to know how much debt you have in relation to your income levels, which will affect how much they can lend. The debt-to-income ratio (DTI) takes account of your employment and income history and measures debt levels.
If you want to reduce your debt and land great mortgage quotes, you can by adjusting your lifestyle or entering a debt arrangement scheme. If your debt is a little too much to handle, a debt arrangement scheme will pay off creditors and set up a manageable monthly payment.
Find a mortgage broker
Finally, you need to find an excellent mortgage broker if you want to land great mortgage quotes. Some mortgage brokers are better than others, and getting a good one can make a difference to the price you pay for your mortgage every month, so make sure you shop around.