Imagine... you've just heard that your mortgage application has been declined. The excitement of stepping onto the property ladder replaced with horror. It's a scenario no First Time Buyer wants to face, yet it is a reality for many. Now, let's rewind a bit and unravel the tale of woe from a fellow First Time Buyer who found themselves in this unsettling position – rejected by his mortgage lender.
The story begins with the stark reality that mortgage lenders, bound by regulations, tend to be radio-silent about the specific reasons why they may have rejected your application. In the UK, 'tipping off' someone who is being criminally investigated is a real offence, which creates a shroud of mystery around the decision for the “No” on your submission.
For the record, there are hundreds of reasons for a rejection, and some may relate to the lender’s own internal factors. In other words, the reason could be them and not you. And for the majority, none of these reasons have anything to do with being investigated. You might want to seek help from the lender or even your broker to resolve the issue, but they will be limited with what information they can provide. So it lies in your hands, the applicant, to correct things which can be super hard if you have no idea where to look.
Your journey towards home ownership requires a keen eye on details. And this story is no exception in relation to the application process.
In this particular case, the applicant had diligently submitted all his requested documents – payslips, bank statements, and tax summaries from HMRC online tax portal. However, he made a crucial mistake – he assumed. The numbers on his papers were assumed to be correct and so the documents were submitted without checked first. The result? A mismatch, an oversight that led to the worst outcome you could think of - rejection of the application.
The big lesson here is crystal clear: check your documents meticulously before you submit them. Every detail, from payslips aligning with bank statements to the salary on your HMRC portal matching your actual income, deserves a thorough examination. If you’ve never logged into your HMRC online tax portal, now is the time! This is critical! Not only for checking your information for your mortgage application, but its a personal finance best practice for keeping on top of things.
Being on top of your financial basics is just one of the 3 Core Home Buying Skills needed for a smooth journey to home ownership. The 3 Core Home Buying Skills, comprising financial preparedness, property knowledge, and paperwork proficiency act as your compass in this complex process.
Now, enough of the doom and gloom, let's shift the narrative to something which you can do to attain mortgage mastery and avoid the same mistake ensuring your application doesn’t meet the same fate as the poor lad in the story. Before you submit your documents to your mortgage broker, spending a few minutes scrutinizing your paperwork can make all the difference. Imagine the relief of swiftly securing a mortgage offer, steering clear of the nightmare of rejection. More than just avoiding frustration, it's about safeguarding your credit history from preventable negative entries.
You, as a First Time Buyer, hold the reins. By being proactive, like a pro, and investing a bit of time in verifying your documentation, you can sidestep the pitfalls that befell others. Your path to home ownership need not be riddled with setbacks. Instead, it can be a journey marked by confidence and control.
Empowering you with knowledge, one document at a time. Take charge of your financial papers, and let's transform potential nightmares into the sweet dream of securing your own place. If you're ready to delve deeper or seek personalised guidance to help your move on to the next step of your home buying journey, let's connect for a strategy session. Your home owning dream is within reach, and it starts with your proactive approach to the details that matter.
Pictures from Unsplash
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