How do you speed up your mortgage application? Even the smallest delay can frustrate a house purchase.
Delays cannot only hit the rest of the chain but in the worst cases, it can also completely stop the sale going ahead.
One area that can cause delays is in your mortgage application. Even the wrong address on your driving licence can lead to things behind held up.
If you want to make sure things go quickly you can speed up your application by having things in order. So here are just a few tips that will help your application be processed quickly.
1. Address the situation
When was the last time you moved? If it was in the past couple of years you may have overlooked updating the address on your driving licence. If it isn’t correct, then you may need to provide further documents.
Also, check the electoral roll. Legally, you should have updated it, but if you haven’t done so it could also delay your application. Here’s how to do it.
2. Don’t be mistaken
It’s easy to make a typo, especially if you fill in details on a smartphone where the keyboard is fiddly and predictive text can inadvertently make changes for you.
Check all your documents, such as payslips, bank statements and other documents with proof of address. The mistake may be genuine and from years ago, but a mortgage lender may not accept documents with errors.
3. Play your cards right
Some credit cards have no fee and that can mean you don’t cancel old credit cards just in case you need them. But this can be a problem as lenders will consider your overall credit limit when deciding on your application. If you have a few unused cards, you may be close to credit limits, so shut them down before you apply.
4. Would you credit it?
When you apply through a mortgage broker, bank or a mortgage comparison site, you’ll be asked to disclose any credit you have. As well as helping you budget, this allows mortgage lenders to decide if your application is successful.
Make sure you disclose all credit you have, especially less obvious ones, such as buying your smartphone on contract, department store cards or those ‘buy your sofa now, pay next year’ deals.
If you forget to disclose any it could mean the lender decides not to proceed with your application.
5. 100% proof!
Saving for a deposit is wise, but if you wait until the last minute to request statements from your bank it could mean delays.
So to speed up your application, make sure you get the last three months of statements printed just before you apply for a mortgage. Lenders need proof and if you haven’t got any, your application may not be successful.
If your parents may have told you they’ll give you something towards your deposit you either need the funds in your bank or a ‘Gifted Deposit Letter’. This is given to confirm that the money being given from a parent to their children is a gift and not a loan. It will need to be given to you so you can show it to your solicitor, which will speed up your application.
6. Taxing problems
Self-employed people need to prove their income for the current year. As you don’t receive payslips you’ll need your SA302 from HMRC. It’s pretty easy to do if you have you use the Government Gateway or have an accountant. If you’re unsure check out the HMRC page.
7. Scan you believe it?
When you have to provide proof of address some of the documents you require may need to originals, not scans.
Even if you print one from a website, it may not be accepted by the lender. So get any originals ready just in case so you’re ready for a more speedy application.
If you’re unsure or need advice, The Mortgage Dog is a mortgage broker with lots of experience. So just ask because we’re happy to help even if you’ve just started looking for a new or first home. Contact us today.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Approval Number: Sol8402
Expiry Date: 23/12/2020
