Why should you get mortgage qualified?

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What is a mortgage?

A mortgage is a loan that you can use to buy a house, the loan comes from a lender, which could be a bank or building society. A mortgage is essential if you can't pay the full cost of a home up front. Most loans are for 25 years or more, this is called a mortgage term. The term can be shorter or longer based on how much money you are borrowing. The loan is then secured against the value of your home until it's paid off.

You then pay your loan back in monthly mortgage repayments. If you don't keep up with paying back your mortgage every month, the lender has the right to repossess your home and sell it to get the money back that they have lent you.

What does getting mortgage qualified mean?

To find out what you could borrow from a mortgage lender, the best course of action is speaking to mortgage advisor. A mortgage advisor can get you mortgage qualified and explain to you what your mortgage would look like, and how much your monthly repayments would be.

A mortgage advisor will do this by reviewing your personal circumstances, including how much you earn, any debts you have, your regular spending, your credit rating, your deposit, your employment status, and what kind of home you want to buy.

Your mortgage advisor will use their expertise to analyse the mortgage market and find a deal that meets your requirements, in terms of mortgage type, length and cost. Following that they will issue you with a Decision in Principle, which is a document from your mortgage lender that confirms how much they may be willing to lend you for your mortgage.

What do I need to do to become mortgage qualified?

You'll need to enlist the services of a mortgage specialist. They will help you start the process of becoming mortgage qualified for you and will see you all the way through to completing the application and securing your mortgage!

At Avant Homes, we have a panel of independent new-build mortgage specialists who can help you take the first steps on your journey to becoming mortgage qualified.

What are the benefits of being mortgage qualified?

There are a whole host of benefits to speaking with a specialist to get mortgage qualified - here are just some:

Free, no obligation expert advice - if you're at the start of your home buying journey, it's key to get good advice early on. By speaking to a mortgage specialist at the beginning, they will be able to give you free advice about what you can borrow and how much your repayments would be.

100s of lenders, 1,000s of products - rather than going directly to just one lender, a mortgage advisor will analyse the whole mortgage market to find a deal that's right for you. There will be exclusive mortgage deals that only your new build specialist has access to that you wouldn't be able to get by going directly to a bank!

You might be able to borrow more than you think! - perhaps most importantly, getting mortgage qualified might enable you to get a higher value mortgage than what a mortgage calculator tells you, meaning you can unlock even more buying power!

Get hunting right away - as soon as you've been mortgage qualified, you'll know how much you can borrow and properly get stuck into the house-hunting process.

Helping all circumstances - if you’re in a situation where getting a mortgage may prove difficult (which we’ve covered below), seeking the advice of a mortgage specialist can help you work through any potential issues and find a deal that’s suited to your circumstances.

What can stop you getting mortgage qualified?

There are a range of reasons which can stop you from getting qualified for a mortgage – we’ve detailed three of the more common ones below:

Bad credit rating - a key factor in stopping you from getting a mortgage is having a poor credit. Common causes of a bad credit rating include not sticking to a credit agreement you have in place (for example, not keeping up with the payments on a car you may have on finance) and only paying the bare minimum on your credit card each month.

Not having a big enough deposit - saving up for a deposit can be the hardest part of buying a new house. However, some lenders may not approve your mortgage application if you don't have a large enough deposit (most likely around 10%).

Failing checks for affordability - a bank will most likely lend you between 4-5 times your yearly income (if you're buying as a couple, it'll be your combined income) and will take into consideration regular payments you have going out (again, for example, a car on finance). If the bank's calculations suggest certain mortgage value is too high for you to afford, they won't offer you a mortgage deal.

Other factors can include being self-employed without having the right proof of income; potential issues with the property you're trying to buy; or the age of the person applying for the mortgage.

Why should I use a mortgage advisor?

Using an independent mortgage broker or advisor can help provide you with the right advice to find a mortgage deal that meets your requirements.

They often use their wide knowledge of the different mortgages available from lenders, and can search the market to find the best deal for you. This can also help improve the chances of finding a mortgage deal which meets your circumstance, which you may not have been able to find through your own searches.

At Avant Homes, we want you to unlock your buying power! Speak with one of our independent new build mortgage specialists who can help you in a matter of minutes, you don't need a credit check!

Get to in touch with one of our Sales Advisors and they'll point you in the right direction so that you can get mortgage qualified today.