What documents you need to provide?
As a first-time buyer, before you start looking at properties, it is recommended that you try to get a “mortgage in principle” to know the amount you can borrow. When you have this on hand, you will know the price range of the property you should be looking for.
Here are the primary documents that you need when applying for a mortgage:
- – Photo ID – it can be a valid passport or a driving license
- – Proof of your current address – utility bill that is under your name
- – Evidence of how you are managing your money – it can be your current account and other loan statements in the last 12 months.
You need to photocopy all these documents when giving to your broker or lender. You can also present other documents that can prove your address and identity.
The basis of mortgage application
You must also remember that during application, the lender will look at various documents that will support your claim, so you must be ready also to provide these documents they will look at:
- – Your income – lenders will look at your annual income, bonuses and if you have overtime into account. If you are planning on renting out a spare room, they may also factor it in.
- – Your age
- – Outstanding loans – if you availed of other loans, it may lessen the value of the money you can borrow or will not get approved.
- – Savings – to show that you can pay the deposits and other expenses
- – Credit record – to show that you are a good creditor and made on time repayments.
As stated before, many lenders will give you ‘approval in principle’ which means that the lender approves you for a mortgage based on the details you have provided to them. Make sure to keep all the copies of documentation and correspondence from your lender in a safe place.