At one point in your life, you probably want to settle down and buy a self-owned house. However, the process of financing your way into your dream home can be a hurdle. So how can you boost your borrowing power when it comes to securing a home loan?
Let’s take a look at some simple tips that will help you get the best home loan rate out there.
Pay Off Debts on Time
When lenders assess your mortgage application, they’ll look at how much debt you have. Basically, the more debts you have, the less chance they’ll approve your loan. So make sure you get your credit record attractive by clearing as much of your debt as possible.
Moreover, paying your fees on time, or if possible in advance, will help make things go in your favor. The better your credit record, the more attractive it is to lenders.
Stabilize Your Financial Fort
Mortgage lenders are picky when reviewing mortgage loan applications. So it is essential that you have an employment or a steady income coming in and a stable address history. It will help boost your chances of appearing as a trustworthy applicant to lenders. Also, if you have credit cards you no longer need, close the account or ask for the limit to be reduced. Lenders will be less keen to lend when they see you have lots of credit cards under your name.
Look for the Best Deal
You can help lower your total cost by simply looking around for home loans that offer the best interest rate suitable for your income. You don’t have to settle right away with the first loan that comes your way. Look for other options that would not only offer you excellent value now but in the long run as well. Doing some research about interest rates provided by various mortgage brokers would be handy, or you might as well consider getting mortgage advice and broking.
Save the Biggest Deposit You Can
Mortgage lenders reserve their lowest interest rates for people with large deposits. It means, most of the top deals on the market are offered to buyers who are able to put down between 35-40% of a property’s value, while those with only 10% will have to pay a higher rate. So start saving early, and set aside as much deposit as you possibly can.
Get Advice from Experts
Joining forces with people who are experts in this field, specifically a mortgage broker, is one measure you can take to increase your borrowing power significantly. Mortgage brokers have broader access to many lenders in the market. They will help you secure the best deal out there that fits for you.
If you are first time buyer, you might want to consider getting mortgage advice and broking from Pursue Wealth. They are a highly competent team that will provide you with the best financial assistance and lending solutions to purchase your dream house.
Help yourself to secure the best deal to achieving your dream home by considering the abovementioned tips. Increasing your borrowing power can help you to leverage more and invest in your desired property faster and easier.