With the widespread destruction in the mortgage market after corona, the lending procedures have a stricter approach on first-time buyer mortgages.
The applicants are in a fix. With already many financial fronts to fight on, they do not know how to win a mortgage approval. They are working on the best possible ways to convince the lenders.
Big Deposit Can Handle The Game
As the comeback of higher LTV is still not promising, the big deposit size is still the best friend of the borrowers. People with the down payment between 15% to 25% can manage to get the approval quickly.
Hire A Broker With a Broad Approach
The market is uncertain nowadays, and only experts can manage to handle the loan procedure well. It is better to find an online first-time mortgage buyer with a broader approach and many lenders on the panel for a wider choice. They know the tactics as well as dos and don’ts of the market.
2 Pointer suggestion for those who are on furloughed income
People on furloughed income can work on any of the two tips –
- They should wait until they get on the full pay again
- They may apply but should accompany their application with proof from the company that it will retain you.
The furloughed people are considered among the applicants that are most prone to the rejections. They must play safe, and in case they have a bad credit situation, they should work on the first idea.
Bring A Strong Guarantor
The guarantor can be the game-changer. Anyone with a strong financial background, good credit score, and stable current income status can be an excellent backing to you.
Additional Collateral
It can be a powerful factor to win approval on the first time mortgage. It is a direct compensation to the lender in exchange for the risk it takes while lending money.
The above suggestions are practicable and can make a positive change in the current situation. Besides, the best rule is to keep a strong repayment capacity, and things will be beautiful.
