Throughout the entire process of finding and making an offer on the home that you have found, you have been organised and prepared for the plethora of queries that came your way. As you enter the financial arrangements of your mortgage you should once again have all of the necessary paperwork that is required so that your mortgage can be expedited. Developing a helpful checklist of what you’ll need to apply for a mortgage will provide you with peace of mind in a somewhat chaotic meeting that seems to demand all of your personal information at one time. Let’s see what your checklist for mortgage paperwork should include so that you can be confident when you make an application for a mortgage.
- The first paperwork that you will need is proof of your identity and documentation that proves your address is what you say it is. You should plan to bring your passport or a driving license; to show proof of your address bring a hard copy of one of your bills that has been mailed to your home.
- You will then need to demonstrate proof of your income. For this step you will need to bring P60 forms covering the last two years and the last three payslips that you have received. If you are self-employed you will need a copy of your tax returns that are verified by your accountant.
- Next you will need to bring proof of your outgoings each month. These expenditures fall into three categories: committed costs, essential costs, and the costs associated with your quality of living.
You can see how mortgage lenders check to determine if fluctuating interest rates will impact your ability to pay in the future on sites such as flagstone.co.uk. Their goal will be to extend a loan to you that you will have no difficulty in paying; they do not want you to overspend or get yourself in financial trouble. You’ll want to check your credit score ahead of time to make sure that it is accurate; you should also provide the lender with the amounts that you owe on personal loans, credit cards, and other obligations so that they can get a true picture of your financial status. As you gather these documents to provide to your mortgage lender, you should consider paying off any outstanding debts that you can manage, curb your spending, and try to work within the budget that you set when you first began to look for a house.
Once you have located all of the required documents you should place them in a folder so that they will be organised and easily read by the lender. It’s a good idea to also make copies of everything that you provide them and keep these in your own file should they contact you later with questions about some of your finances.
Being organised, planning ahead, and having the necessary documents handy when you apply for a mortgage will make the entire process go more smoothly.