Applying for a mortgage is a big deal, representing probably the largest amount of money you will borrow in your lifetime. It's important that this step goes as smoothly as possible, so that there is one less stress on you as you go about purchasing a home in London. Here are some tips to consider to ensure a smooth application process:
Know your credit status. If you are a credit card spender or have a couple of lines of credit, or even if you have a financing option on a vehicle, you'll want to check your credit rating before you apply. It's a nasty surprise for your potential mortgage broker to be the one to tell you your credit rating isn't that great, so make sure you know what it will say about you.
Check your credit report yourself. There is potential for error in everything, and the last place you want an error when applying for a mortgage is on your credit record. Go over it carefully and make sure everything is recorded accurately.
Take care of as many outstanding items as you can right away. The better your credit, the more your mortgage can be, so try to take care of as many outstanding bills as you can.
Be honest. We're all tempted to exaggerate our income or minimize our debts when applying for a loan of any kind in order to be approved for more. Don't think for a minute that "they'll never know". In the first place, people who go over that application are trained to verify facts, and to look for things that seem out of place. In the second, you might not want to be approved for a mortgage based on overstated earnings; maintaining the payments could prove very difficult.
Organize. You need to disclose a lot of personal information when you apply for a mortgage, and it will go a lot quicker if you have everything ready beforehand. Locate your last two income tax statements, recent pay stubs, investment accounts, and bank records. Having these ready to go may cut down on the number of appointments you need to make.
Stay at your job. The wrong time to make changes in your life is when you are waiting for your mortgage application to go through. If you have been thinking about leaving your job, wait until the mortgage has been approved; you never know when the lender might call your boss to confirm your employment in London. If you're moving from afar, try and secure a new job in London before you start your mortgage application.
Don't accrue further debt. Don't go out and spend like crazy on your credit card or accrue other debts. If your lender finds out before the loan goes through, it may affect their decision to trust you with a large sum of their money.
Having a good handle on these items will help to ensure that your mortgage application and approval process goes smoothly. Even properly prepared, the mortgage application is still a long process, so it is important to make sure that you do everything you can on your end to help things along.