Running a charity can be a hectic and often thankless job. There are so many different areas that you need to give attention to that the whole process can sometimes become a bit overwhelming. It is easy to lose sight of important things such as applying for a mortgage as a result. You do not want to be so focused on other things that you commit a costly error when it comes to your charities’ mortgage.
Despite the fact that mortgage lenders have started to increase the number of mortgages they now removed, since the recent mortgage crisis has ended, they have learn some of the lessons that the crisis taught them. They are selective on who they provide financing to, meaning that you have to be on top of your game when you are meeting with the bank manager in order to gain approval for a mortgage.
There are some common mistakes that people make when they are applying for a mortgage. Here are some of those mistakes that you should avoid.
Having a poor credit rating
No matter if you arelending money to a friend, or you are a large bank providing millions of dollars in investment, the lender never wants to lend to someone who will more than likely struggle to pay them back. If the mortgage broker sees that you have missed repayments on other debt that you have in the past, they will be very sceptical on your ability to meet mortgage repaymentsin the future.
By failing to do so, your credit score will be negatively affected. It can take many years for your credit score to recover from these problems as aresult. By working with a mortgage broker Melbourne, you will understand these pitfalls better.
Having a significant amount of outstanding debt
When someone has a large amount of outstanding debt, this is often a warning sign to the lender that the applicant is comfortable having large amounts of debt at any period of time, and they maynot be as concerned with the consequences of missing a payment. If you are paying a large amount of debt back every month, you may not be in a position to consistently and comfortably add mortgage repayments on top of this existing debt.
Therefore, in the months leading up to the mortgage application, you should focus on repaying as much of your existing debt as you possibly can. You should never have multiple credit cards at any one time, as this allows the lender to see how much you use credit on a daily basis.
Having only recently started the charity
IF a person has only recently become self-employed or left a steady job to take on a challenging position, the lender can often look unfavourably on them. People who are self-employed or who have taken up a risky position will often have widely fluctuating income on a month to month basis, meaning that their reliability in terms of making repayments could be affected. If you have only been in this position for a few months, the lender may decide to decline your application.