How to Up Your Odds of Getting a Mortgage
If you have found the house that you plan to live in for the rest of your life, you are probably now talking to banks to see about a mortgage. Without good credit, banks are going to have to really evaluate whether or not you would be a good person for such a big loan. Your goal is to improve your chances of getting a mortgage, because without one there is no way that you can get a house. What can you do to improve your chances of getting a mortgage?
Do your research. The very first thing you want to do is to figure out what your financial history is. If you don't know it, you are going to want to get your credit score. This score is going to tell you whether your credit is good or not and is the number that banks look at to determine if you are a high risk or a low risk. If your score is not that great, you may find that it is difficult to find a bank that is willing to lend you the money that you need. On the other hand if your score is great, you will find that banks are fighting for your business and may even offer you special deals to take out your mortgage with them.
Budget your money. Show banks that you go to your budget, which is going to illustrate how much money you are currently paying for housing and how much you would pay with a mortgage. When you show the banks that you will be saving money by buying a house and that you can afford it, they will be more likely to approve your application.
Don't forget about your down payment. Most people buying their first home don't have a big enough down payment saved up. Unless you have a perfect credit rating, a lot of banks aren't going to want to take the risks if you don't have enough money to invest in the house. To improve your chances of getting approved, save up at least 20% of the price of the house before applying.
Find a cosigner. When your credit is not so great, a lot of banks are going to ask for a cosigner, which is someone who is going to put their house and mortgage on the line in case you don't pay. If you have someone who will do this for you, this is going to drastically increase your chances of getting that mortgage. A lot of people are going to be reluctant to cosign for you if you are fiscally irresponsible.
Find out about the real estate market. When the market is hot, you are going to have a better chance of getting a good mortgage. When the market is cooling, banks are going to be more reluctant to loan money because the price of the property may go down.
Know about the neighborhood. A lot of banks and lending companies are going to ask you about property vales and other things in the neighborhood that you plan on living in. If you are able to tell them how much the neighbor's house sold for a couple years ago, they are going to be impressed and really realize that you have done your homework. This means that you are going to have a better chance of getting your mortgage approved.
Getting a mortgage approved is getting more and more difficult everyday with the economic downturn. However, if you follow these six tips you are going to find that getting a loan for your dream house is going to be possible.
Do your research. The very first thing you want to do is to figure out what your financial history is. If you don't know it, you are going to want to get your credit score. This score is going to tell you whether your credit is good or not and is the number that banks look at to determine if you are a high risk or a low risk. If your score is not that great, you may find that it is difficult to find a bank that is willing to lend you the money that you need. On the other hand if your score is great, you will find that banks are fighting for your business and may even offer you special deals to take out your mortgage with them.
Budget your money. Show banks that you go to your budget, which is going to illustrate how much money you are currently paying for housing and how much you would pay with a mortgage. When you show the banks that you will be saving money by buying a house and that you can afford it, they will be more likely to approve your application.
Don't forget about your down payment. Most people buying their first home don't have a big enough down payment saved up. Unless you have a perfect credit rating, a lot of banks aren't going to want to take the risks if you don't have enough money to invest in the house. To improve your chances of getting approved, save up at least 20% of the price of the house before applying.
Find a cosigner. When your credit is not so great, a lot of banks are going to ask for a cosigner, which is someone who is going to put their house and mortgage on the line in case you don't pay. If you have someone who will do this for you, this is going to drastically increase your chances of getting that mortgage. A lot of people are going to be reluctant to cosign for you if you are fiscally irresponsible.
Find out about the real estate market. When the market is hot, you are going to have a better chance of getting a good mortgage. When the market is cooling, banks are going to be more reluctant to loan money because the price of the property may go down.
Know about the neighborhood. A lot of banks and lending companies are going to ask you about property vales and other things in the neighborhood that you plan on living in. If you are able to tell them how much the neighbor's house sold for a couple years ago, they are going to be impressed and really realize that you have done your homework. This means that you are going to have a better chance of getting your mortgage approved.
Getting a mortgage approved is getting more and more difficult everyday with the economic downturn. However, if you follow these six tips you are going to find that getting a loan for your dream house is going to be possible.
posted by Debt Consolidation Loan at
10:09 AM
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