6 Ways to Boost your Borrowing Power – words Al Woods
Sometimes the keys to your dream apartment aren’t so easily in reach due to the lender’s and their offers. If you are desperate to borrow more money and to move into the home of your dreams, then read on as we share 5 tips on making yourself more attractive to lenders, with hopes of attracting a bigger loan.
First things first, it is important to keep in mind lenders will judge you based on your credit score, and will also take factors such as affordability, income and any existing debts into consideration.
In order to be considered for a larger loan, it is therefore crucial that you fix all of these areas so that they are attractive to the lender in question.
Here are some tips which will help you to get your finances in shape and boost your borrowing power before you decide to apply!
Get rid of debts
Money you already owe will be one of the first factors that lenders will look at. The more debt you owe, the less you may be able to borrow, so with that being said, it is best to pay off existing debts prior to making your mortgage application, or try to pay off as much as you can.
Boost your Credit Rating
The healthier your credit rating, the more likely lenders will be happy to help you out. There are various ways in which you can improve your credit rating, which includes paying all bills on time, and being on the electoral pay roll. You can find out how to improve it further online.
Together with your income, lenders are also interested in the affordability factor, and look at how exactly you spend your cash. They will consider everything from living expenses to lifestyle choices, therefore if you want to borrow the maximum, be sure to reduce the outgoings where possible. Using a budget planner can come in handy when looking at your finances.
The best thing to do before making any drastic decisions is to compare online. Using a good website with an online calculator, such as Habito.com’s calculator, you can be sure to find the best deals suited to you. This stops you from falling into the lenders terms too quickly, and allows you to see what you can truly afford before you take on their offers.
One major thing people forget about when applying for a mortgage is to shop around. That one factor one lender is not willing to pay out for, another one might, so it will pay you to look around before making that final choice. Also, you may be able to find a mortgage which is under better terms, such as lower interest, or a cut in the deposit amount, so it really is important to carry out some research prior to picking a lender.
Getting your mortgage is not so difficult when you know how to do it right. The good thing to take away from this is that the more attractive your financial situation, the more likely you will be offered the larger loans from lenders, as they will deem you to be responsible.
Prepare well in advance, and you too will be able to own the house of your dreams.