Understanding Loan Terms

Increase Your Chances Of A Mortgage Approval With These Few Tips

14 July 2018

Stanley Simmons

If you are going to be applying for a mortgage loan in the near future, you are going to want to make sure that you are doing everything you can in order improve your chances of an approval. This is important, so you will not have to worry about missing out on the home of your dreams because the mortgage lending company was not able to approve you because of a couple of small issues. Therefore, you will want to take the time to review the following tips that you can make use of.

Get All Of Your Credit Reports Cleaned Up

You will need to make it a point to request your free copy of your credit report from each of the major credit reporting agencies. The reason this is so crucial is that what you may find on one report might not be what you find on another report. This is because when a creditor is submitting their reports on your payment status, they are not required to submit it to a particular agency or even all of them.

Your credit could look great on one credit report, but another report could be full of problems. This is something to consider even if you know that you have made all of your payments on time, as there could be errors on your report that could cause you to be denied the loan if they are not fixed before you submit your mortgage application.

Save Every Spare Dollar You Can

It is important to make sure that you have has much of a down payment as possible, as well as the closing costs that you might need. Remember, not all sellers are willing to cover the closing costs in order to close the deal. This is something you need to be prepared to handle, even though it is still worth it to have your real estate agent ask.

Then, if the seller is willing to cover the closing costs, you can add that money to what you have saved for the down payment. Make sure that from this point until your application time that you are saving every dollar that you can. This might mean making some sacrifices, but the result will be worth it when you are in your new home. 

Consider A Cosigner

This is someone that would apply for the mortgage loan with you, and it is generally a good idea to have one if your personal credit score is not as good as it would need to be in order to qualify on your own. Generally, this person will need to have a suitable credit score and have verifiable income, even if you are the one that will be making all of the mortgage payments.

After all, as a co-signer for the mortgage, they are just as legally responsible for the payments as you are. However, with their help, you can get into a home that you may not have otherwise been approved for. Over time, as you improve your credit score, you can always look into the option of refinancing the mortgage. At that time, you can have the cosigner's name removed from the mortgage.

With those few tips in mind, you should find that getting approved for the mortgage for your dream home will be much easier to do.

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