Skip to main content

The mortgage process can seem complex and lengthy and, for especially first-time home buyers, may be intimidating. However, the mortgage process can be smooth and timely, if you’re prepared from the start. Here are some tips to guide you along your journey.

Check on your financial health

 Budget, save and reduce your debt

Preparing for a mortgage means doing an assessment of your savings, debt and future obligations, which could affect how much you can afford. You may need to manage your expenses so that you can save more to finance your deposit and other mortgage-related costs, as well as reduce your debts to make room for future mortgage payments and other housing costs.

Check your credit score

When assessing your debt, it’s wise to check your credit history and score. A check on your credit history is among the first thing lenders will do to determine whether you have a good financial footprint and repayment history. Therefore, you should check what’s on record about you at one of the approved credit bureaus to ensure the information is accurate. The better your financial footprint and history of repayment, the better your score and easier it will be to negotiate the rate you desire.

Get pre-approved for a mortgage

After lowering or eliminating your debts, and building a pool of savings, the next thing you ought to do is get pre-approved by a mortgage institution. The pre-approval process is about looking at your total financial health– that is, your income against your total debt. This will tell the realtor or vendor what you can afford to pay for a mortgage. Therefore, prior to shopping around, you need to know how much you are qualified to spend on a property. The pre-approval is free of charge!

 Start the process!

 Do your homework

A mortgage is a financial commitment that a homeowner often must live with for years, so it’s important to research loans, rates and brokers exhaustively before signing or committing to anything. You’ll want to shop around to find the financial institution that meets your needs. For instance, JN Bank, a member of the JN Group, is the foremost mortgage expert in the private market and will guide you every step of the way. They offer a variety of mortgage options, and because they are a member of the JN Group, you will have access other products and services that you’ll need as a new homeowner, such as insurance, at good rates.

Petal Hall, Sales Executive at the JN Group, advises: “You need to ensure that the mortgage provider you choose is looking out for your best interest, and they will make the process easier, not more stressful.

Get organised

Lenders tend to require a lot of documentation as part of the mortgage approval process, so it’s a good idea to gather everything up before you’re ready to apply. When you get to that stage, you’ll be able to hand over all your paperwork to your loan officer at once, saving you time to focus on other important matters.

Click for more about the mortgage process.

Was this article helpful?
YesNo