Will my Mortgage Application change if I’m applying somebody else?
Being a first-time buyer and signing up for a mortgage application is a daunting experience. The prospect of securing that first mortgage, sorting the mortgage application and whether you can afford to go through with it. It can all be a bit overwhelming, can’t it? This can leave you with many questions.
One question that tends to crop up regarding the mortgage application process is will it change if you are buying alone or with somebody else. So, what we’re going to do is debunk any property purchase myths surrounding individual mortgage applications vs. couples’ ones, in this article. Let’s get started!
A Joint Mortgage Application
So, you’re about to sign for the house of your dreams with the one you love oh-so-dearly. What could go wrong? But wait, a sudden thought creeps into your head. ‘What if I only put my name down on the mortgage application instead of my partner’s and mine?’ If you’re asking yourself this, you will have also probably asked yourself ‘will this save me money?’ as well.
While this might seem like a cunning idea at the time, the truth is that you won’t save money. Essentially, all applicants in the buying process undergo the same affordability assessments and go through the same document submission process.
Do joint applicants have the capacity to borrow more?
When a lender approves a mortgage application they must perform an affordability assessment on the person wishing to borrow from them. This involves numerous procedures to check that they are capable of actually affording the mortgage.
Whilst affordability checks and scoring systems vary between lenders, they all have their common denominators. This includes checking whether you have enough financial income to pay for the mortgage you’re applying for. It can also involve checking your expenditure to see whether this is going to be sustainable over a long period of time.
Other ways of proving your affordability on your mortgage application can take the form of checking whether you have a good credit score. On the bright side, if you are completing a mortgage application with a friend or a partner you will have the scope to borrow more! This is because your incomes are combined on the mortgage application, meaning you can borrow far in excess of what you could individually.
How different is the procedure?
The wonderful truth about applying for a mortgage with somebody else is that it doesn't necessarily make the process more complicated. So, breathe. Regarding document submission, the types of documents that you’re required to fill out are basically the same whether you’re a joint or single applicant.
This will still mean that you have to provide your current address, your income, proof of your identity and any outstanding current credit commitments. It’s difficult to dress this up as anything more than standard procedure for filing a mortgage application. But, the glaring truth is that this won’t vary depending on whether you’re a single or joint applicant.
Submitting documents for a joint mortgage application:
So, picture this. You’re starting to fill in all the documents for your new home. You’re dotting the i’s and crossing the t’s on the mortgage application documents with the person you’re going to be moving in with. Everything’s going smoothly. And now you’re faced with the challenge of keeping track of them.
And then, what sounds like a relatively easy task at face value can soon spiral out of control. To keep on top of this you’ll both need to work hard. Keeping track of the mountain of scans, emails and documents can be tricky so we recommend that if you’re keeping a joint account then make sure all of these files stay in the same place.
This is NOT to be overlooked. If you and the other applicant are co-managing the documents this can be a great idea for looking over who has filled in what. For example, it can prevent both of you completing the same task. It can help you can plan and set deadlines for certain documents to be completed by certain dates.
Though we’re sure this has probably crossed the mind of our younger readers without thought, we recommend that you keep these documents stored on a computer and avoid paperwork. This can be a great way of preventing documents going missing and provide an easy means of correcting and amending files before they are printed and signed.
Is there anything else I need to know?
This is where we step in. At Mortgages Online we aim to find the right mortgage for you and (in this instance) your partner as well.
Remember that completing the mortgage application process as a joint applicant doesn’t differ too much with a single applicant. But to ensure it stays this way, make sure that you follow our tips. Be organised and keep on top of all the documents that you receive. It can go a long way to reducing any stress you might get over buying your dream home!
While there’ll be a truckload of mortgage lenders who are going to offer better rates for joint applicants, be vigilant, buyers! We can help compare the best mortgage rates for you and your partner so that your buying experience goes as smoothly as possible.
