Financial Health Check
If you want to use a mortgage for covering the cost of a new home it is importat to prepare your finances. The key is to understand how to manage your monthly expenses.
In preparation for your mortgage application run a quick financial health check to see if you really are ready to make the application.
Start Your Monthly Budget (or update if you already have one)
It is important to create a tracker of your monthly outgoings and incomings. Once you have applied for a mortgage and it has been approved you must prioritize these monthly payments to ensure that you don’t end up falling behind.
There are plenty of ways to start a budget so find the best method that works for you. There are numerous mobile apps and software available or keep it simple with a basic spreadsheet or a piece of stationery.
Getting Started.
Note down any sources of income so that you know the amount of money you are working with. Then note down each and every one of your expenses. This can be quite a challenge but credit and debit card statements over the previous few months can act as a great reminder.
If you do forget something add it in to your budget as soon as you remember and carry out a quick recalculation.
Get A Copy of Your Credit Report
The next step is to get a copy of your Credit Report. This will help you understand what your potential Mortgage lender will be looking at when evaluating your financial history.
Remember that you must use a government – approved website when requesting your credit report. This is a free service accessible to all . Be Wary of Scams.
Do You Have A Deposit?
In order to reduce the risk to the lender a deposit must be paid on each home purchased. The bigger the deposit, the better the interest rate and mortgage product on offer. The cost of you new home will determine the amount that you must have saved up. Try to aim for savings of around twenty percent of your new home’s purchase price.
Ready to Go?
Make an appointment to chat with a professional.
Now you have run a quick financial health check it’s time to meet with a mortgage professional who can help you understand all the options available to you.
Get in touch with us to book an appointment with one of our friendly partner experts.
We can help you find you perfect new home.
