Your Mortgage and the Dark Arts

In the past few months, there have been whispers of both the banks and real estate developers cutting down on mortgage lending. Supposedly, there is not enough demand to warrant an increase. Can this be true?


It seems that there is a decline, but not because of lack of demand. The rules for acquiring a mortgage have become so strict there seems to be a great difficulty in getting a mortgage or even in getting enough funds to cover a purchase if the borrower does manage to acquire one.


There isn't any magic involved in getting that elusive mortgage, although many borrowers wish there could be! But, if you follow these tips, you have a greater chance of hearing that elusive "Yes."


First of all, have all your documents in order before you even apply for a mortgage. This may entail calling the lending institutions or the real estate developers and asking what the requirements are for that loan. Having them all in hand gives you an edge over those other borrowers who have to scramble to get everything together.


Next, confirm what that magic number is called the lender's credit score. You will be able to find websites that sell you your credit score – not that you should rely on that entirely.


Then, the creditor will look at how stable you have been. Brownie points for staying at a single address for a period of several years. Even more plus points are added to you when you are registered to vote in the area where you live. That shows that you've established long-term residence, something only those that have stable incomes can accomplish.


Add to that the number of dependents that you have since these mean more expenses and less ability to pay off an additional debt. Credit cards with an outstanding balance also affect your score, no matter if you earn much more than you owe.


However, for reasons unknown to common man, even people that have all this have still been refused a mortgage.