Common Errors When Applying For Home Loans
Are you looking to get a home loan? Do you think you have everything you need to qualify for that mortgage? We suggest you look again. The thing is, today, lending regulations have become even tighter. Lenders took hard lessons from the industry collapse a few years back and decided to do something to protect themselves. Of course, that means that you, the borrower, might have a tougher time qualifying for that home loan now.
That, however, does not mean that you should despair. Home loans provision is still a business and lenders need you to stay afloat. That means they actually want to give you the money. You just have to make it easier for them to do so. By avoiding these common mistakes, you put yourself in a much better position to qualify for a home loan.
Not registering to vote
We know, this doesn’t sound like it should have anything to do with your home loan but it does. Lenders are finding every single angle to ensure that they can verify the information provided by you. Being registered as a voter at your current address ensures that they can verify who you and increases your chances of your application going through – at the very least, it does not curtail it from the get-go.
Many of us have so much going on at any given time that we almost always float through life in some kind of daze. This is particularly true when you come across forms to fill out. As soon as they start asking you for your full names you immediately go into auto pilot and answer away without necessarily internalising the questions being asked or picking up on tiny clerical errors you might be making. When applying for your loan, ensure that you are paying close attention to those boxes and before you hand it in, go over everything once more just to be sure.
Not finding the right lender
In many cases, your application may be perfect but sent in to the wrong lender. Like we said before, home loans is a business and like every other business, each lender has a preferred niche. Maybe they like lending to developers, or HMO owners or high-end customers.
Whatever the case, making an application without first finding out the profile of your chosen lender and seeing whether or not you fit into their preferred niche is a mistake. You have fundamentally put yourself at a disadvantage and no matter how good your application is, you already stand out as a risk to the lender just because you do not meet the profile.
It takes a little time to get it all right. The best thing you can do here is, if you are not applying online, sit down with a broker and fill out the form step by step just to make sure that you have done everything correctly and that you are applying for a loan from the right lender.