Applying for your first mortgage can be nerve-wracking.
How much a lender is prepared to offer you will determine whether you can afford to buy a suitable property in your target location.
It is also important to understand that your lender will only issue the loan after valuing the property you want to buy and determining whether you have offered a reasonable price. If they think the prospective mortgage is higher than the property value, they will not proceed with the financing.
You will need to collect a number of basic records to prepare for the home loan application process. Some lending institutions may also require additional information.
Identity
You’ll need a driver’s license and passport. Non-citizens must show their visas. A lender will ask for your mother’s maiden name, details of your nearest relative and where you’ve lived during the past three years.
Earnings
Two payslips, a bank statement and the last two tax returns should get the job done.
Dependents
You will need to disclose any dependents (whether you are responsible for anyone else such as children and/or a spouse).
History
Don’t try to hide any issues. Your credit rating and history are easy to find. You’ll also need to state your work history for the past three years.
Outgoings
Estimate your day-to-day expenditure and use your credit/debit card statements to indicate spending habits. Show receipts for any rent you pay.
Debts
Declare any loans you are already servicing, such as those for a car, furniture or holiday. Show the past three months of your credit card spending.
Wealth
You will need to prove your savings with a bank statement that covers the previous three months, declare any stocks or additional assets such as vehicles.