Tips For Getting Your Mortgage Loan Approved
As a Merrillville mortgage professional, I am approached by many people who don’t really know what they need to do to get approved for a loan.
As we know, there are many reasons why a person would seek a loan. It could be because they just purchased their first home or they want to refinance their mortgage in order to save money. Whatever your case is, the following tips will surely help you increase your chances of successfully being approved a mortgage loan.
One of the first things to consider when seeking a loan is whether or not you can you truly afford it. Knowing an amount that you can comfortably afford to make payments of is crucial to your happiness and success of paying off your mortgage. Only you truly know how much you can afford.
Brokers and lenders can help you navigate the process and come to an amount that you can afford, but you are the only one who knows what your day-to-day expenses are. It’s important to be honest with yourself and not commit to something that you know you will struggle to pay for.
A second thing to keep in mind when going to approve your loan is to keep close tabs on your credit score. Several people assume they have a good credit score or simply don’t care enough to check beforehand. Knowing that you have a good credit rating and that everything on your report is accurate can help speed up the process and significantly boost your chances of getting approved. Ensuring you make your payments on time and do not exceed your credit card limit can help boost your score.
Lastly, it’s important that you are prepared financially before applying for a loan. What this means is that you need to have some cash on hand to begin as lenders require a down payment for their services. This number can be different depending on the lender you are with, but a 4% down payment is the norm in the mortgage industry. By paying a down payment, this will also decrease the overall amount you must pay back on your loan.
Of course, having cash saved away somewhere is always a good idea in the event that an unexpected event occurs, such as a pipe leak, broken air conditioner, and more.
If you’re thinking about applying for a mortgage loan, remembering these tips can increase your chances of a successful approval. Additionally, check out this post on things NOT to do when applying for a mortgage.
If you’re looking for a Merrillville mortgage lender, I am your guy! I have been helping people in the Merrillville area for years and am prepared to help you with whatever your mortgage needs require.
To get started or to ask a question, please contact me today!