How to Run a Quick Financial Health Check Before You Apply for an Essex Mortgage
How to Run a Quick Financial Health Check Before You Apply for a Mortgage
If you want to use a mortgage for covering the cost of a new home? In such a case, it is important to prepare your finances and understand how to manage your monthly expenses. Let’s look at how you can run a quick financial health check to ensure that you are ready to apply for a mortgage.
Update (Or Start) Your Monthly Budget
To begin with, it is crucial to be ready with the fundamentals. Create a monthly budget to track your income and expenses. After you have a mortgage, you must prioritize your monthly payments to make sure that you don’t end up falling behind.
It is straightforward to start a budget using mobile apps, software, a spreadsheet or basic stationery. Note down various sources of income to ensure that you know the amount of money you are working with. Then, note down each one of your expenses, even though the process can be quite challenging. However, this can be simplified using debit and credit card statements as a reminder from the last several months.
Get A Copy Of Your Credit Report
Next, obtain a copy of your credit report to understand what potential mortgage lenders will look at when evaluating your financial history. This is a free service. Remember that you must use government-approved websites to request your credit report. Be wary of scams.
Do You Have A Deposit?
For each home purchase, you need to place a deposit, so the lender has reduced risk. The bigger the deposit, the better interest and product you will get. Your home’s cost will determine the amount that you must have saved up. Try to save an amount that is about twenty percent of the home’s purchase price.
Ready? Chat With A Professional
As you now understand how to run a quick financial health check, you can meet with a mortgage professional to understand your alternatives.
Get in touch with us today for booking an appointment with our friendly partner experts. We will help you out with financing so you can buy your perfect dream home.