Over the last few years, Norwich has become something of a property hotspot. With consistently low crime rates and a city that offers lots of culture, it’s not hard to imagine living in a place this beautiful. As you search for houses for sale, Norwich has much to offer too! The average property price here is £221,000, making it a great place to buy your first home. If you are making that first house purchase in Norwich, though, you may wonder a bit about the process of applying for a mortgage. Fortunately, it’s not quite as complex as you might imagine.
Before You Apply
Before you place an application either directly with a lender or with a broker, it may be useful to contact the three main credit reference agencies so you can get a closer look at your credit report. Lenders in Norwich and throughout the UK rely on credit reports to assess whether you’re a good candidate for a loan, so it can be helpful to know, in advance, whether or not you’ll be ablet to get a loan. In general, the higher your credit score with the three bureaus, the better your chances of obtaining a mortgage. Each bureau, though, uses a different number system to help decide which borrowers have a good score and which have a concerning score. Experian ranks those with good credit from 881 – 960. TransUnion ranks those with good credit from 604 – 627. Equifax considers those with good credit to be in the range from 420 – 465. If your credit isn’t what you’d hoped it would be when you go to look at your score, though, don’t worry. There are many things you can do to repair your credit before you approach a lender.
In addition to checking your credit, there are a number of documents you’ll want to gather before you approach a lender or a broker. You’ll need utility bill records, a P60 form from your employer, your payslips from the last three months, proof of your identity (usually in the form of a passport or driving license), and bank statements from the last six months. If you are self-employed, you will need additional documentation like two years of statements from an accountant and an SA302. Keep in mind that some lenders may ask for different or additional paperwork, but in general, these are the kinds of things you should gather before you approach a lender.
You may also want to take the step of doing a bit of research about mortgages, particularly if this is the first time you’ve worked to obtain a loan for a home. There are a number of different mortgage products out there with varying terms, and understanding what might be right for you can be quite helpful as you approach an advisor.
Applying for a Mortgage in Norwich
The next step is to actually start a mortgage application. You’ll need to choose between working directly with a lender or working with a mortgage broker. A mortgage broker puts many different kinds of loans from different lenders at your fingertips, but they can be a bit expensive. A lender offers only a few different products, but there are no additional fees outside of those attached to the loan. Moreover, some lenders have direct-only deals that brokers can’t access. In general, though, a broker will steer you toward their products instead of giving you an unbiased view of the whole mortgage market.
Whether you decide to go with a lender or a broker, though, you can expect the credit check and to provide documentation to prove your ability to repay the loan. Once you make your choice, you’ll complete the mortgage application. After a few days, you’ll be notified as to whether your application has been approved or denied. In the event your application has been denied, you may still have some options as to how to get a mortgage so you can buy a home in Norwich.
Demystifying the Mortgage Process
There are many houses for sale Norwich residents can take advantage of, but in almost every case, a home sale here starts with the application for a mortgage. Work to learn as much as you can about the process so you can apply for a mortgage that meets your needs.