What will they ask me? How to prepare for your mortgage application
There are things you need to know before applying for a mortgage.
07:44 29 January 2014
When applying for a mortgage, you should prepare yourself to have the answers to the questions that your mortgage provider will have. Some questions are standard questions that any broker or loan provider is likely to ask. These common questions are designed to enable the loan provider to get a better understanding of the type of person you are and assign a risk factor to your application.
Here is a checklist for you to prepare yourself for the questions that you will be required to answer:
1.How old are you?
Your age is important for the financial provider to be able to work out how long your mortgage should be. The younger you are, the longer you can spread your mortgage period.
2.What is the status of your employment?
The mortgage provider will not be looking for information about your entire employment history, just the current employment status and the type of job you do. You do not have to provide a rundown of your employment history, all the mortgage provider is interested in is that you have a source of income to meet your monthly mortgage payments.
3.Do you want a fixed or variable mortgage rate?
You will need to find out which one is best for you. If you are not sure, you can always ask a financial advisor to explain the benefits and disadvantages of both mortgage types.
Other documents
In addition to being prepared to answer the questions above, you should prepare a folder for documents that are likely to be required like utility bills to prove your current address, your ID or driver's license, bank statements, payslips and the details of your estate broker.
Remember the easiest way to get through a mortgage approval process is to be thoroughly prepared for the questions you might be asked.