Getting a home mortgage loan approval can be a stressful and time-consuming process. But there are some tips that can help you along the way. Following them can increase your chances of getting the mortgage loan you want.
First, know your credit score. This will affect your loan eligibility and interest rates. Before applying, you should check your credit report and score and then fix any mistakes. The higher your score, the better the chance that you will get the loan you want. It’s also a good idea to shop around for the best rates. You can compare quotes from three to five different lenders. A good broker can help you compare quotes from different lenders and find the best deal.
Next, have a budget. Lenders want to know that you will be able to service the loan payments. When you have a budget in mind, you can more easily shop for the best rates. You can use a mortgage calculator to see how various factors will affect your monthly payments.
Next, find a loan officer. This person will work with you to help you apply for a loan and explain the process. He or she should be knowledgeable and experienced and be able to provide objective advice. You will need to supply a lot of financial information to the lender. He or she will need your income, your credit, your assets, and your debts. If you have a lot of debt, you will need to pay that off before applying for a mortgage.
Next, get pre-approved. Getting pre-approved means that your lender has looked at your credit score and debt-to-income ratio, and will be able to give you a loan amount that you qualify for. They will also provide you with a pre-approval document that describes your loan terms and interest rate. These documents can help you get approved faster.
Finally, contact your loan officer before changing jobs. You will need to provide a written explanation for your change in employment. Even if you are currently employed at a similar company, you will need to discuss the change in employment with your loan officer. If you have been employed at your current job for at least two years, you will still count as consistent employment. It’s important to notify your lender as soon as possible so that you don’t make your approval contingent on a change in employment.
A recent news story highlighted three common reasons that mortgage loans are rejected. You may be rejected if you make a sudden change in employment or if you’ve made self-sabotage. It’s important to be honest with your lender so that they can avoid any misunderstandings. It’s also important to let them know if you’re self-employed. It’s important to have a reliable income to show that you can service your mortgage payments.
Getting a home mortgage loan approval can take some time, but if you follow these tips, you’ll find the process is much easier.