Where to start?
Before you start looking for your dream property you should prepare carefully for the transaction. Some costs will be incurred at the beginning and you must remember that you invest your precious time when you look for the property in your spare time.
1. Make sure that you are registered on Electoral register;
This factor, often ignored is very important and may have a great impact on the preliminary decision of the lender. The entry in Electoral register identifies you with your current address and that in the later stage will help credit reference agencies to verify of your residence in Great Britain. If you have not registered yet you can still do it on www.aboutmyvote.co.uk, fill in the short form, print it and send it to your Local City Council. If you are not sure if you have registered at the proper address you can get the information in the local city council.
2. Checking your credit history
Before applying for a mortgage it is important make sure that you have a good credit profile. If at any point in the past you have had any problems with paying off a financial commitment it is vital to check your credit report. Institutions which grant mortgages take into account your income level as well as your credit score which is shown in your credit report. The system of score is in the scale from 0 to 999 or 0-5 (depending on the company) where 999 or 5 is the best result. Your credit score may be influenced by your presence in Electoral register’, the report of your loans, credit cards and regularity of paying off every credit liabilities. Anyone interested in checking their credit profile may use websites such as:
www.noodle.co.uk (which is fee alternative) and many others
If you are unsure about your credit report or have a problem obtaining your credit report , contact Step by Step Financial Solutions Adviser on 02380 982 433 and ask for no obligation consultation.
3. Meeting your financial adviser.
If you are interested in buying a property you should begin with meeting your financial adviser. Be prepared for this meeting with some basic information:
Confirmation of your income:
For the employee these are payslips of the last three months and P60,
For the self-employed – SA302 tax returns for last two or three years or full –set of accounts,
For Directors of Limited Companies- full set of companies account for the last two or three years,
Your address history for the last three years,
Information about your financial commitments (including your loans and credit cards),
Your employer’s data.
A qualified financial adviser will be able to assess your borrowing abilities by contacting the lenders in order to obtain preliminary agreement – Agreement in Principal. Your decision in principle will specify the borrowing potential which is the maximum amount you are able to borrow at the time of the credit application. Agreement in Principal (AIP) is not the final decision from the lender but it is a very positive and important signal that your credit profile suits the lender of your choice. Now if you have such a certificate (normally valid within 30 to 90 days) you may start your search for a suitable property.