After receiving your mortgage offer there are a few things you should do - or rather, not do.
They include;
Don’t apply for any other new credit. Doing so may well change your credit profile and result in your offer being withdrawn.
Don’t pay off debt. This might sound silly, but if you think about it, it’s not. Any change to your credit profile (such as by reducing savings) can affect your mortgage offer.
Don’t change your job! At least, make sure your lender is OK with the new position. Changing your personal profile may well invalidate your mortgage offer.
Don’t fall behind on your existing bills. It may sound obvious, but incurring a credit strike after your offer won’t help you at all!
Finally, make sure that you provide the mortgage lender with all information they request promptly and once you have an offer don’t forget that in a buyer’s market cash is king! As the holder of a mortgage offer in principle, make sure you get a good deal from your seller.
Applying for new credit
Mortgage lenders are required to do a second credit check before a final loan approval.
If it's just an inquiry, that usually doesn't cause a problem, but if you've opened a new account then it will have to be verified and that could delay your settlement.
Your credit score could change because of the new credit, which may mean that your interest rate must be adjusted.
Making major purchases
If you buy furniture or appliances with credit, your lender will need to factor in the payments to your debt-to-income ratio, which could result in a cancelled or delayed settlement. If you pay cash, you'll have fewer assets to use for a down payment and cash reserves, which could have a similar impact.
Paying off all your debt
"Every move you make with your money will have an impact, so you should consult with your lender before you do anything. Even if you pay off your credit card debt it can hurt you if you close out your account or reduce your cash reserves.
Changing jobs
If you can avoid it, try not to change jobs after a preapproval, even if it seems like a good move, we'll need to verify your employment and you'll need one or possibly two payslips to prove your new salary, which could delay your settlement.
Ignoring lender requests
If your lender recommends or requests something specific, you should follow directions and do it. Providing all documents as soon as they are requested can help avoid delays in the settlement process.
Falling behind on your bills
You must pay all bills on time and make sure you don't have an overdraft on any account. If you have payments automatically billed to a credit card, you should continue that practice. Your preapproval is a snapshot in time and you want to make sure your finances stay as close to that snapshot as possible.
Make sure you discuss everything with your mortgage broker and stay in constant contact throughout the loan process.
Contact Mortgage Required to speak to a mortgage adviser on 01628 507477.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
The Equity Release Council has revealed that three in five UK homeowners are interested in releasing money from their property later in life.
Prices for UK houses drop in July 2024
7 days ago
The average seller’s asking price dropped by 0.4% in July, a bigger drop than we have typically seen.
We explore the differences between Millennials and Gen Z and what both generations ideally want from a new home.
Overpaying mortgage vs money into savings
18 Jun 2024
Should you overpay your mortgage? If you can put extra cash away you need to seriously consider whether you should pay more off on your mortgage or put it into a savings account.
Buying a property, especially in the current climate, is a big decision for first time buyers. We have listed a few tips that can help you buy your first propertyy
Does the time of year make a difference in house purchases? The answer is, yes and no.
The popularity of buying a house can vary depending on various factors such as regional trends, how the economy looks, and of course personal circumstances.
6 Garden Tips to Add Value to Your Property
30 Apr 2024
If you are looking at putting your house on the market, you may want to consider giving your garden some TLC. Small changes can make your outside space a lot more attractive to potential buyers resulting in a faster sale.
Averages for a first time buyer in the UK
24 Apr 2024
Getting on the property ladder is a big milestone in life, and is not something to take lightly. There are several things to take into consideration such as saving up for a deposit, finding your dream home, and finding the best mortgage product to suit you. Here we look at UK first time buyer statistics.
More information
Trusted by
