Many house hunters often fall in love with their dream home a little earlier than they had planned and some had no intention of moving at all, but then BAM; a casual afternoon spent property window shopping changes it all. Panic ensues as the heart overrules the head and the race to secure their new dream home becomes the main priority.
Having a good credit score is an essential factor for making that dream a reality, by following our six easy steps we can help you on your way.
Your credit score really can make the difference between being able to buy your dream home or having your mortgage application rejected. Don’t leave it to chance, even if getting onto the property ladder or making your next move aren’t on your immediate radar. It can take around six months to improve your score and eligibility, so do some of the groundwork now to take away the stress of any nasty surprises popping up.
1. Check your credit score – it’s a bit of a no brainer, but people often avoid checking for fear of what they might find. There are a number of credit reference agencies but the top three are Experian, Equifax and Callcredit. These agencies can be really helpful, call them to discuss any inaccuracies or aspects you don’t understand.
2. Register to vote – even if you aren’t politically motivated, all people on a mortgage application need to be on the electoral roll. If you are unsure, ring your local council to check, this can sometimes take up to three months to show on your credit file, so don’t leave it until the last minute.
3. Pay your bills on time – particularly mobile phone bills and credit cards as missed payments will show on your report for at least six years.
4. Don’t apply for any credit – within a six month period leading up to your mortgage application as it decreases your score, although having credit available is important. So ensure you do have a credit card or two but with a low or zero balance that is cleared every month.
5. Cut back on spending – lenders check your bank statements to ensure no unusual spending is occurring on a regular basis and you can afford the mortgage repayments based on your outgoings. So spend less in the six months running up to the application.
6. Stay out of your overdraft – even if you have an authorised overdraft, this can indicate to a lender that you may not be managing your finances effectively and stretching yourself too much.
We can introduce you to independant Financial Advisors who can offer free mortgage advice at all of our new developments, call today to speak to our sales teams for more information.