How to Get a Mortgage Approval - 17 Tips to Boost Your Chances

Article written by Irina Demina

Securing a mortgage may not always be a straightforward task. The procedure tends to be intricate and the stipulations set by the lenders can be stringent.

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Despite this, there are measures that you can employ to boost your likelihood of obtaining a mortgage. Following these steps can significantly enhance your chances of successfully navigating this process. Therefore, it's crucial to understand these steps to ease your mortgage acquisition journey.

1. Dont Expect Every Lender to Fancy You

Meeting the fundamental requirements for a mortgage doesn't guarantee that all lenders will be eager to provide you with a loan. Various lenders possess distinct criteria and varying levels of risk tolerance.

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Therefore, it's crucial to explore diverse options. One should look for a lender whose requirements align with their profile. This way, you increase your chances of securing a mortgage loan.

2. Check Your Credit Report Before the Mortgage Lender Does

The decision of a lender greatly depends on your credit report. It is of utmost importance to review it before it reaches the lender's hands to avoid any unexpected issues.

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This preemptive measure helps to maintain clarity in the process. Credit bureaus provide an option to get a free copy of your credit report.

You can utilize this service to stay informed about your credit status.

3. Correct Credit Score Errors Pronto

Should you discover any inaccuracies on your credit report, it is crucial to rectify them immediately. These errors can have a detrimental effect on your credit score. Consequently, this may lower your likelihood of securing a mortgage.

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To resolve this issue, get in touch with the credit bureau. Also, make sure to contact the company responsible for reporting the error to ensure it is rectified.

4. Register to Vote or Your Chances Might Be Scuppered

Registering to vote can have a positive impact on your credit score. The electoral register is a tool lenders use for verifying your identity and residential address. If you are not registered, it could create difficulties for them in this verification process.

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This could potentially jeopardize your ability to secure a mortgage. Therefore, being registered to vote could enhance your creditworthiness in the eyes of lenders.

5. Delink from Ex Partners or Flatmates to Stop Their Credit History Wrecking Your Chances

Sharing finances with a partner or roommate in the past might have connected your credit history with theirs. Their credit history, if poor, could potentially affect your likelihood of securing a mortgage. It is crucial to take steps to avoid this from happening.

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You can do this by reaching out to credit reference agencies. Ask them for a notice of disassociation to separate your credit history from the other person's.

6. Carefully Manage Your Available Credit

When deciding to lend to you, lenders consider your credit utilization, which is the portion of your available credit that you're currently using. Your credit utilization is a significant factor in assessing your creditworthiness. It is advisable to maintain your utilization below 30%.

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A lower utilization rate demonstrates your ability to handle your credit in a responsible manner. So, to increase your chances of securing a loan, make sure to manage your credit usage effectively.

7. Close Old, Inactive Accounts – They Can Kill Your Application

Holding a large number of open credit accounts can be perceived as a potential risk by lenders, regardless of whether they are active or not. There is a concern that you might accumulate debt unexpectedly.

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Prior to applying for a mortgage, it is advisable to close any open accounts that are old or not being used. This action can help to alleviate lenders' worries. It serves as a step towards securing your mortgage application's success.

8. Always Pay ALL Your Bills on Time

Falling behind on payments or failing to make them can greatly affect your credit score. Financial institutions prefer individuals who demonstrate reliability in managing their finances.

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It is crucial that you show your financial responsibility. This can be achieved by consistently meeting all your bill payments promptly.

Therefore, strive to pay every single bill on time, without fail.

9. Dont Apply for Other Credit Shortly Before a Mortgage

When you apply for credit, it may result in a temporary decrease in your credit score. If you seek additional credit just before a mortgage application, your score could drop at an inconvenient time. Therefore, it's advisable to refrain from such actions.

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Particularly, in the six months prior to your mortgage application, try not to apply for any other credit. This approach can help maintain a healthier credit score when applying for a mortgage.

10. Cut Back on Spending Before You Make Your Mortgage Move

When evaluating your application, lenders will analyze your expenditure patterns. High levels of non-essential spending could lead them to question your money management skills.

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They might also express concerns about your potential to make mortgage payments timely. Therefore, it is advisable to reduce any unnecessary spending.

Consider doing this several months before applying for the loan.

11. Stay Out of Your Overdraft

Frequently utilizing your overdraft could be interpreted as a warning sign by lenders. This may give the impression that you are having difficulty managing your financial matters.

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The goal should be to avoid dipping into your overdraft whenever feasible. As much as possible, try to keep your account balance positive. This practice can help maintain a good impression with potential lenders.

12. Make Paying Your Rent Boost Your Credit Rating

Improving your credit score can be achieved by consistently paying your rent on time. Credit reference agencies often consider rent payments when generating their reports. However, there might be some agencies that do not include this data.

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In such a case, you should contemplate utilizing a rent reporting service. This service will ensure your timely rent payments are accounted for in your credit history.

13. Put £100 More Than You Have to on Your Deposit – It Can Ease Acceptance and Boost How Much Youre Able to Borrow

The magnitude of your down payment can significantly influence your mortgage approval odds. When you offer a larger deposit, the risk taken on by the lenders lessens. This decreased risk can increase their willingness to grant you the loan.

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Interestingly, even a slight increase in your deposit, such as an additional £100, can tip the scales in your favor. Therefore, every bit counts when it comes to improving your likelihood of securing a mortgage.

14. Sort Your Paperwork to Speed Things Up

Organizing your paperwork beforehand can expedite the application procedure. Documents such as payslips, bank statements, and proof of identity are part of this. Having them ready in advance is essential.

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Ensure that you have all these crucial documents at hand. Do this prior to starting your application.

15. Avoid Delays – Fill Out the Application Form Correctly

Mistakes on your application form may result in postponements or possible dismissal. It is crucial to dedicate sufficient time to accurately complete the form. It's also important to double-check all the details you've entered.

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Ensuring you supply all necessary documents is vital. Providing the required information accurately will help to prevent any complications.

16. Test Drive Your Mortgage Chances

Prior to submitting a mortgage application, it is advisable to obtain a decision in principle. This is essentially a declaration from a potential lender indicating their willingness to loan you a specific amount, theoretically speaking. This can provide you with a preliminary understanding of your likelihood of being approved.

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Additionally, it can offer an estimated indication of the mortgage amount you might be granted. This step can be instrumental in guiding your mortgage application process.

17. Rejected? Stop Before You Make Another Move

Should your application be turned down, it's not advisable to hastily submit another elsewhere. Experiencing multiple rejections could negatively impact your credit score.

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This could, in turn, complicate future attempts to secure a mortgage. It's important to take a moment to comprehend the reasons behind your rejection. Prior to resubmitting your application, make sure to address and rectify any problems.

It Can Increase Your Chances of Mortgage Acceptance

Following the above-mentioned steps can greatly improve your likelihood of getting a mortgage approved. Lenders prefer to deal with borrowers who exhibit responsible financial behavior. They want evidence that you are capable of managing your finances properly.

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By showcasing these skills, you enhance your appeal to these lenders. Therefore, your chances of mortgage acceptance can significantly rise.

It Can Impact How Big a Mortgage Your Lender Is Willing to Offer You

The actions you undertake can influence the loan amount your mortgage provider is prepared to give. One such action could be enhancing your credit rating. Another step you could take is lessening your overall debt.

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Additionally, boosting your deposit can also affect this. Consequently, these measures could elevate your borrowing capacity from 4.5x your income to a potential 4.75x.

Boost your mortgage chances

Securing a mortgage can be a complicated endeavor. However, by following the correct procedures, you can enhance your odds of achieving this goal. Keep in mind that each lending institution operates differently.

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It's crucial to explore multiple options before settling. Don't lose hope if your initial mortgage application doesn't get approved.

The initial application is just one step in this process, and there are many more opportunities ahead to explore. Your dream home awaits, and with these 17 tips in your toolkit, you're well-prepared for the exciting chapters still to come.

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