MORTGAGE APPLICATIONS – AVOIDING DISAPPOINTMENT
With rents continuing to soar throughout the country the dream of home ownership remains as strong for most people as it has been at any point. Michael Curtin – Managing Director and Rob O’Neill – Senior Mortgage Advisor with MC Financial have outlined common reasons for a declined mortgage application
#1 You must have a GOOD CREDIT HISTORY, so it would be imperative not to miss any loan/credit card payments. You can check your credit record with the ICB. www.icb.ie
#2 LACK OF SAVINGS. Clients have to be seen to be saving every month. A minimum of 5% of purchase price is required in personal savings for all the lenders bar one (who will accept the whole deposit to be gifted)
#3 YOUR EMPLOYMENT IS NOT PERMANENT or you have only recently started employment.
#4 CLIENTS IN RECEIPT OF SOCIAL WELFARE INCOME will not qualify (one lender will include people on carers/disability allowance)
#5 MISSED DIRECT DEBITS. It is vital that your main current account where your wages are paid into is in tip-top shape. Unpaid fees and missed direct debits are a definite no no! Make certain to plan ahead to ensure that you can meet any payments due from your bank account.
#6 TOO MUCH DEBT. Having too many debts outstanding will limit the total amount you will qualify for. Keep borrowings in mind if you plan to purchase a house in the near future.
There are a few other “RED FLAGS” to be aware of which the banks look out for when assessing someone for a mortgage, and if one of these turns up it may go against you.
ONLINE GAMBLING – Evidence of this could be seen on bank account/credit card statements, so this would be something to avoid.
AN OVERDRAFT – (even if the bank has approved it) could also go against you as could a CASH ADVANCE on your credit card (using your credit card to get cash)
However don’t lose heart! If you are in secure employment, are able to show that you can repay a mortgage, and have strong credit history your mortgage application should be approved.
So prepare your mortgage CV. Changing small but important financial habits to ensure your six month track record looks good will keep the lenders on side.
For further information or to arrange to speak with Michael or Rob, please contact us on 01 8228022