Improving Your Odds of Getting Approved for 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?
Educate yourself. You definitely want to educate yourself on what your financial history is like. If you aren't sure what it is, get a copy of your credit score and your credit report. Banks look at your credit report and score to determine what their risk is when they lend money to you. If your credit history is not so hot, you may find that a lot of banks are hesitant or won't loan you any money to buy your house. You have the power if your credit score is good because banks are going to want to loan you money and may even offer you special deals so that you choose them.
Know where your money is going to. When you go in to talk to banks, take a copy of the budget that you drew up that shows exactly how much you are currently spending on renting a house and how much you would pay with your mortgage payment. When banks find out that you are able to afford the mortgage payments they are going to be more likely to approve the application.
Build up your down payment. The vast majority of first time buyers don't have 20% of the price of their future home saved yet. If your credit history isn't rock solid, a lot of banks won't want to take the risk on a loan with less than the required down payment. To up your odds, save up your money before applying for a mortgage.
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.
Research the real estate market. You are going to have a better chance of getting a mortgage if you are planning on buying a house in a hot market. If you are going to buy something in a market that is cooling down, you are probably going to find a lot of banks aren't willing to give you a mortgage on a property that is going to decrease in value.
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.
With the economy not being so hot, it is getting more and more difficult to get a mortgage. Following these six tips is going to drastically improve your shot at a mortgage.
Educate yourself. You definitely want to educate yourself on what your financial history is like. If you aren't sure what it is, get a copy of your credit score and your credit report. Banks look at your credit report and score to determine what their risk is when they lend money to you. If your credit history is not so hot, you may find that a lot of banks are hesitant or won't loan you any money to buy your house. You have the power if your credit score is good because banks are going to want to loan you money and may even offer you special deals so that you choose them.
Know where your money is going to. When you go in to talk to banks, take a copy of the budget that you drew up that shows exactly how much you are currently spending on renting a house and how much you would pay with your mortgage payment. When banks find out that you are able to afford the mortgage payments they are going to be more likely to approve the application.
Build up your down payment. The vast majority of first time buyers don't have 20% of the price of their future home saved yet. If your credit history isn't rock solid, a lot of banks won't want to take the risk on a loan with less than the required down payment. To up your odds, save up your money before applying for a mortgage.
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.
Research the real estate market. You are going to have a better chance of getting a mortgage if you are planning on buying a house in a hot market. If you are going to buy something in a market that is cooling down, you are probably going to find a lot of banks aren't willing to give you a mortgage on a property that is going to decrease in value.
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.
With the economy not being so hot, it is getting more and more difficult to get a mortgage. Following these six tips is going to drastically improve your shot at a mortgage.
posted by Debt Consolidation Loan at
8:11 AM
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