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The anxiety of a mortgage application

Applying for a mortgage to buy a home has always been a stressful experience, worrying if you will be accepted and what will happen if your application is rejected, but it has been exacerbated over the last few years with the financial crisis that has hit the financial markets.

So it comes as no surprise that over a quarter of applicants are not in any way confident that their mortgage application will be accepted and the figure increases even higher amongst first time buyers which is 38%. When an application is turned down, what do applicants do to ensure that a future application will be successful? It appears that 27% plan to seek professional advice, 32% have not yet taken any steps to increase their chances of success, which is a mistake as research has revealed those taking profession advice means that their confidence is improved, but more importantly, the success rate is very high with 81% of advised applications being approved first time.

Although mortgage rates have fallen not many people are taking active steps to ensure that their application will be successful and many people are pessimistic about securing a loan to buy their house, but are doing little or nothing to address this. When applying for a loan there are some simple things that should be done before any application is made. Check your credit score and make a detailed analysis of all outgoings, surprisingly few people do this over and a third of applicants do not take any action in these areas.

So is there a gender difference in confidence when it comes to mortgage applications? Well apparently as it seems that men are more confident than women and men are more likely to have taken steps to improve their chances. Another surprising feature is that women have said that they do not intend to reduce their spending to increase the chance of being successful with a mortgage application; only 21% of those asked in the survey said they planned to do so to increase their chances.

To be successful with a mortgage application the best possible advice is to seek professional help right from the start, they will be able to find the best and most suitable deal for your circumstances and advise any steps that you should take to improve this. It is never a good thing just to hope for the best; the professional can ensure that you take specific steps that will make your application an attractive one to the potential lender.



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