4 Ways to Improve Your Chance of Getting a Mortgage
Mortgage talk is HOT on everyone’s minds right now – especially in the midst of the spring and summer buying season. Homes rarely stay on the market for long if they’re a hot buy — so here’s how to jump start your likelihood of getting a mortgage, so you can get the home of your dreams faster!
- Check your credit report. Make sure everything on your credit report is accurate, and dispute anything that’s incorrect. Make sure you pay down any debt you have, and don’t rush to close old accounts. According to Realtor.com, 15% of your credit score is due to overall account length. The longer you’ve had a certain credit account open, and as long as that account is intact, it’s wise to keep it open.
- Get pre-approved for a mortgage loan. Getting pre-approved may not guarantee you a home loan, but it will help you get an “in” with your lender to show that you are capable of being fiscally responsible and are serious about buying a home.
- Don’t apply for new credit shortly after applying for a mortgage. This could affect your score, and down the road, lead to rejection of getting a mortgage. Lenders will see every time that you have applied for credit, and your even searching for it can register a ding on your credit file.
- Decide on the right type of mortgage. According to Realtor.com, the type of home you want, as well as assistance you’ll need, will help decide what type of loan you’re eligible for. If you’re a veteran, you could consider a Department of Veterans Affairs loan. If you’re a first-time homebuyer, the FHA could help you out, and provide you with a 3.5% down payment. Daily Finance recommends to get your paperwork together. Your lender will want to see proof of income, assets, credit documents, and any other important documents showing you make what you say you make, and that you are who you say you are.
Have questions? Reach out to a local mortgage lender or ask an experienced Realtor for referrals. Happy Hunting!