Getting a mortgage may seem like having an Oscar in your hands. The process of understanding and meeting the lender’s more stringent requirements has now become a big obstacle for most of us. Put yourself in a lender’s shoes: Would you be comfortable to give thousand dollars to one who might walk away without paying off? Of course not. You’ll be looking for a brighter candidate who can repay a loan with fewer hassles.
The qualification criterion isn’t that tricky as it may seem like climbing Everest. You’ll just need lending expert’s tips to be as attractive to lenders to get the deals they have. There are certain ways that help you to improve your odds of getting the best mortgage deals.
Get Your Paperwork in Order
You need to convince banks that you have got all the financial discipline as listed by them to pay your mortgage back. According to Paul Anastos, president of mortgage lender loan Depot’s retail division email; You’ll need W-2 (tax form) for the last two years, past few month’s paycheck stubs, list of complete debts, including student loans, auto loans, credit cards and alimony, proof of previous rent payments, list of complete assets including auto titles, bank accounts, investment accounts or any real estate and all your financial statements.
Don’t Miss Any Payments
You cannot expect a lender to accommodate you if you miss your payments. Yes, this can be the serious one because you need to show that you’re responsible and have a good track record of paying your dues on time. (Visit monitorcredit365.com, to view your free credit report card, updated every 14 days)
In case you miss a payment during the screening process and the lender re-checks your credit report, he could derail your loan application immediately.
Make a Large Down Payment
If you increase your down payment, the chances of getting the loan may tilt in your favor. However, how do you do this? Putting a significant amount of cash on a house is also alarming for banks. However, stay calm as there are many community programs to help first-time borrowers, so check around.
Carefully Consider Asking for the Highest Loan Amount
Your loan amount depends on your monthly income and expenses. You should prepare an income and expenditure summary to calculate your maximum mortgage loan amount best. It’s not only about getting a huge amount of the credit, but its repayment series can suck your mind.
Improve Your Credit Score
Before you apply, it is advisable to check your credit scoring. Most models run from 300 to 850 but on average you need 620 or higher score to qualify for a conventional mortgage program and a score of 740 or plus to get the best rates. If you think your score is looking shoddy, put some effort before applying.
You should also clear your previous dues before applying. The less your current dues are, the more your chances of getting approved. According to Jensen, “Bankers love to lend those who don’t actually need it, in contrast to those who’re desperate.”
Avoid Big Purchases Until After You Close
Develop some patience. You need to balance out your expenses before applying for a loan. One large purchase, for example, buying a new house or a new car right before closing an application can derail your chances to zero. You need to wait until the ink gets dry on all papers.