As a CEO, you’re used to making some big decisions. Every day, you’re responsible for securing the future of your business, and for helping it to thrive. However, sometimes the most momentous choices that you have to make affect your personal rather than your professional life.
The money that you earn from your enterprising endeavours won’t just sit in your bank: you’ll use it to support, improve, and attain the lifestyle that you want. When your enterprise is doing well, you might choose to upgrade your home, and this is where one of these big decisions rears its head.
The question: are you really ready to upgrade? Buying a property is likely to be one of the largest purchases you ever made, so it’s vital that the time is right for making your move. Although most people will turn to mortgages to supplement the cost of buying, this still has some serious outgoings attached to it. So, are you ready to take out a mortgage? Here are three questions to help you find out…
Do You Have Job Security?
One of the ways that mortgage lenders will assess your suitability, and the level of risk you pose, is by assessing your job security.
For those that have been in their current position, or at their current company, for less than six months, lending is often hard to secure. This means that rather than looking immediately, it may be better to wait for six months to a year before beginning your property search.
Those who are self-employed will also struggle, and may need to turn to a specialist loan provider like Saffron Building Society in order to secure the necessary funds.
Do You Have a Positive Credit History?
Another factor that mortgage providers will take into account is your credit history. For those that have a history of debt, this is likely to be poor, and this will make borrowing extremely difficult. Problems will also arise for those with no credit history, as lenders have no means of verifying the level of risk that you pose. Luckily, these problems can often be remedied relatively easily, the simplest method being to take out a credit card, spend six months building a credit record, and then start your property search anew.
Do You Have a Large Enough Deposit?
A final question to consider is whether you’ve built a large enough deposit. Although most mortgage lenders will accept a nominal sum in exchange for lending to you, the less money you manage to save, the less favourable the terms of your mortgage agreement will be. Thus, if you have only a small amount of the purchase price available, it’s probably a good idea to save some more, and then approach providers when you have a little more money in the bank.
Are you really ready to take out a mortgage?