Jan 07, 2022
4 min read
Before you begin viewing properties, it’s a good idea to find out how much you can borrow as a mortgage. Armed with a figure, you can then make sure you’re only viewing properties you can afford. Once you’ve used a mortgage calculator and have a general estimate in mind, it’s then time to get in touch with a mortgage advisor who can help secure you a more accurate figure. Ahead of this discussion, there are a few things to prepare.
A mortgage interview enables your mortgage advisor to ensure you are a suitable candidate for a mortgage. They will want to learn about your finances to ensure you have the ability to pay back the loan. Not just now, but in the future too when interest rates fluctuate.
Your finances will undergo a stress test. This is to see if you can meet your monthly mortgage repayments if interest rates rise.
The aim is for the lender or broker to help you choose the most appropriate mortgage for your current needs and circumstances. At the end of the session, whether that’s one long discussion or several shorter meetings, you should have a clear view of your finances and feel confident that you can comfortably afford your mortgage.
Central to any mortgage discussion is the lender or advisor assessing if you can afford mortgage repayments. They’ll ask you about your income (the money you have coming in) and expenses (the money you’re likely to spend). Jot down the figures – your income, debt, monthly outgoings and how much you’ve saved for the deposit.
It’s also worth checking your credit history. Make sure there’s nothing that could stand against you. If you spot an error, get it corrected.
As part of the preparation for your meeting with a mortgage lender, it’s worth gathering documents about you and your finances. Among others you can think of, gather:
How long does a mortgage application take? Working with a mortgage broker and having these documents to hand means you can progress as much as possible in the first conversation.
The mortgage advisor and lender want to firmly grasp your current situation and how future plans might impact what you can afford. As such, they may ask personal questions to see if you’ll feel financially stretched further down the line. You could be asked:
They could also ask you about having children in the future, car loans, property renovation and repairs.
Use your mortgage discussion to ask any questions you have. This is your chance to understand how much you can borrow. It’s a time to turn your dreams into reality – and that means being realistic. Do your research first to be sure you can give accurate answers.
Some mortgage brokers may charge a fee for their services. How much do mortgage advisors charge? Ask for their fees upfront so you are prepared for this cost.
Once you know how much you can borrow, you have a budget. Now you can get serious about looking for your next home to buy. Get started by searching on Boomin.