We all know how tough it is to secure a mortgage when buying property. How many times did you have to walk away from a good deal because nobody offered you a decent loan to cover up the initial purchasing costs? Since getting a good mortgage is pretty much essential when buying a new home, you have to find a few ways in order to boost your chances of getting approved by an accredited banking or lending firm.
So what are the best ways to accomplish this goal of boosting your chances of getting a decent mortgage? Here is a list which compiles the ones that seem worthwhile to pursue or attempt:
Have as Much of a Big Deposit as Humanly Possible
If you actually manage to secure a huge deposit of money (whether through your savings or in another way), you are actually very close to getting a good mortgage regardless of any other factor. Banks are more willing to call up their home loan calculator in Singapore when a buyer can manage to put down something that is between 35-60% of the total value of the property. This becomes even more important for first-time buyers since they have very limited ways of showing proof of good credit.
Pay Off Debts
Being free of unnecessary debts is also a great way to boost your chance of getting mortgage approval. The reason is actually simple and quite easy to understand even for those not familiar with banking in general. When you have a lot of unpaid debts, the bank or any other lending institution you contact will be reluctant to lend you money because the same thing may happen with the mortgage loan as well.
Update Your Address
Another mistake that prevents homebuyers from securing a housing loan is their failure to update their current address. Registering on the electoral roll is just as important though: this is actually how most lending institutions try to verify your location and even your identity.
Close Off Unused Accounts
Why have an unused account that has no purpose anymore? Since this will also prove to be a problem when getting mortgage loans, just close down any of your current or savings accounts that you don’t need. It’s not a hard thing to do, but not taking your time to do it can come back to hurt you later on.
Be Careful If You Are Self-Employed
Lending institutions are mostly reluctant to provide loans or other monetary facilities to self-employed individuals. If you are one of them, be prepared with all necessary documents (especially those that show some kind of proof of your monthly and yearly earnings as a self-employed individual).