What Can Delay a Mortgage Application?
When you’re
going through the process of applying for a mortgage, the last thing you want
is for any hold-ups to delay the chain.
Unfortunately, this is a very real case for many homebuyers around the country.
In this blog, we’ll discuss the unexpected factors that can cause a delay in
your mortgage application that you should avoid.
Your current living address should be completely uniform across all forms of identity you use within your application. You will need to use proof of address to prove your identity and if these contradict each other, it could delay your mortgage application. Some lenders will observe whether your address and name match your electoral roll, so ensure that you keep this updated - even if you change your name due to marriage or divorce.
A poor
credit score can dramatically affect your application and can play a huge role
in the success or failure of a mortgage application. You should order a copy of
your credit report as often errors can occur within it. For example, perhaps a
previous housemate of yours failed to pay an overdue household bill.
You can check your credit score using a number of online platforms. If you find
that you have a poor credit score there are a number of steps you can
take
to improve it,
including registering to vote and demonstrating that you can pay lenders in
time.
Remember - no credit history at all can be just as bad as a poor one because lenders are unable to find patterns in your spending behaviour and your ability to make repayments for a mortgage. Be sure to research ways in which to improve your credit score to avoid any hold-ups in the application due to a lack of credit history.
Inaccurate or missing information on your application
Inaccurate information on your mortgage application will only delay the process, so do pay attention to every aspect before you submit it. Whether it’s rounding up or down your total annual income or failing to declare a debt- missing out any truthful information can delay your application.
The same applies to missing information. If you are missing vital paperwork or documentation for your mortgage, for example, forms such as P60 or utility bills, you could be unintentionally delaying the application.
People with a self-employed status will need to be careful when submitting their application. Often, lenders will look for consistency in earnings - and if this is something that varies in your monthly paycheque, it might be a cause for concern for potential lenders, even if you are changing jobs.
If you have just started a new job and suspect your earnings might be questioned, get a written letter from your new employer stating that you have a secure job and salary.
Need assistance with applying for a mortgage? The experienced team at Andrew Lee & Co Property Lawyers in Kent are here to help take the confusion out of understanding the mortgage process. Get in touch today to discuss how we can help you.
