Moving To New Home And Qualifying For Home Mortgage

Financeby Mashum Mollah07 April 2021

Qualifying For Home Mortgage

Moving houses is always a great deal of hard work and excitement. The process of moving homes begins even before moving your furniture an inch away. Extensive research about the neighborhood and the property is a much-needed procedure.

Families and individual residents should look out for all the accessible amenities like schools, hospitals, groceries, leisure space, a commuting network easily accessible. The safety factors of the locality are also one of the essential aspects that have to be taken into account.

Once all these boxes are ticked off, finding the right property requires so much research. The best properties can be found with the help of local brokers or through property finder websites.

Even though there are many options and methods out there to find the right home, getting information from existing residents of the locality is even more promising. These processes can be followed by walking up to keep a close check on the property and the surrounding amenities to make a final call.

Finding a bigger and better home in a beautiful neighborhood will definitely tempt people to go for a better choice. Some might have secured a better job with greater perks, so they will have to shift over to a completely different area.

 Managing Property Finances:

Managing Property Finances

 Buying the best property is every man’s dream.

However, not all of them will have their finances ready. While most of them will possess home loans for the homes they are currently living in, which might be a hindrance while buying a new property. You can overcome this by opting for moving home mortgages.

It’s easily achievable with the help of the best online mortgage brokers in the UK. There are three types of mortgages that people should be aware of before opting for the best one that suits their preferences.

1. The existing mortgage can be shifted over to the new property known as porting. Before transferring the existing mortgage over to the new home, the person should confirm this option with their mortgage providers, as not all mortgages are portable.

If porting is not possible, a new mortgage contract must be signed up with the new lender without disturbing the previous mortgage deal.

2. Choosing a new mortgage deal as a substitute for the old deal. After discussing with the previous lender, they might suggest a different mortgage option that is better in all aspects. With this, the person can move into a new home and continue dealing with their existing provider.

3. Picking a new mortgage deal with a different provider if the existing dealer does not have a better offer. This is most preferable when you find the best deals from the latter.

If none of the options fit, you can acquire exit fees or early repayment options to close the old mortgage contract at the earliest.

This is a very rare option picked or approved by the resident or the lender.

Qualifying For Home Mortgage-

Availing of a home mortgage is a viable option when your financial charts are not in place. After finalizing a property, you should begin your mortgage journey at the lender’s office.

A pre-approval letter is required from the buyer’s side to prove your financial affordability to buy a property. Through the pre-approval letter, you will know the final interest rate and your maximum mortgage eligibility so that you can plan your deposit accordingly.

A pre-approval letter details your credit profile that will come in use for the lender in the later phase. This also helps the property lender to decide if the buyer’s profile information meets their needs. The chances of property rate negotiations are high when the buyer possesses the pre-approval letter.

Related Reads: Top 10 Mistakes To Avoid When Buying A New Property: By Real Estate Professionals

For a buyer to qualify for a home mortgage, the following documents would  have to be given to the lender:

1. Income proofs:

The wage statements from the last two years, along with the current income, should be submitted. Apart from this, if there are any additional incomes like tax returns, bonuses, and alimonies, they should also be shown into account along with respective proofs.

2. Proof of assets:

The source for funds to complete the down-payment and other cash reserves should be submitted to get qualified for the home mortgage. The bank statements and other account statements are the proofs required.

3. Employment verification:

Buyers with stable employment and income have high chances of getting their home mortgage approved. The lender would check with the employing organization to verify the same.

4. Decent credit score:

A FICO score of 620 and higher is required for the mortgage to get approved.

5. Miscellaneous documents:

Documents like driver’s license, social security number, and other paperwork are required.

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Mashum Mollah

Mashum Mollah is the man behind TheDailyNotes. He loves sharing his experiences on popular sites- Mashum Mollah, Blogstellar.com etc.

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