Advice For Getting Approved For A Mortgage Loan
If you are interested in buying a home and will need financing in order to do it, you will want to make sure that you are investing some time into the preparation of the mortgage loan. This way, you will have a much better chance of receiving the approval that you need in order to get the home of your dreams. Here are some tips to help get you started.
Finance Less Than The Value Of The Home
You will want to ask to finance less than the value of the home, so the lender can see that there would be some equity in the property that they could use should you ever default on your loan and they had to foreclose. While you might never believe that you would find yourself facing a foreclosure, the lender does not know you personally, and they need to protect their best interest. To be able to finance less than the value of the home, you can ask the seller to accept a lower offer. You can also put a large down payment down, as the only amount that you will need financed will be what is left after your down payment is accounted for.
Fix Your Credit And Explain What You Can't Fix
It is a good idea to pull your credit report, so you can closely examine it. The goal is to spot any errors that could be causing your credit score to suffer. There could be anything from wrong reporting by your creditors to complete fraud from someone stealing your identity. Make sure that you are filing disputes for anything that is not correct on your report. No error is too small, so you will need to report all of them. Also, if you have an explanation for a period of time in which you might not have been able to make all payments to your creditors on time, you will want to make a note of that.
For example, if you were severely ill or injured from a disease or accident and you were unable to work for that time, you will want a note added to your credit report to explain that. This way, the mortgage loan company will be able to have a better understanding of what you went through, instead of possibly assuming that you were simply irresponsible with your money.
Talk with your mortgage broker for additional advice on how you can improve your odds of an approval for the mortgage loan you need.