Home Mortgage Tips

Buying a home for the first time? If you plan on taking out a mortgage, you will likely want to know just how you can get pre-approved for enough financing to get the home of your dreams. In today’s post, we will share four tips that will help you to boost your chances of a successful pre-approval when you apply for a mortgage.

Polish Up Your Credit Score

It should come as no surprise that your credit score is one area every mortgage lender is going to inspect. Order a copy of your credit report and be sure to go over any outstanding items in detail. Are there any old or retired debts on there that need to be removed? Or do you have any outstanding black marks that will need to be explained? If necessary, take the next step and visit a credit repair specialist to get things polished up.

It’s Best To Apply When You’re Employed

While it’s not mandatory to have a job to get a mortgage, you will certainly need to demonstrate that you have enough income to afford to make your monthly payments. Waiting until you (and your spouse or partner, if applicable) are gainfully employed will go a long way in making your lender feel confident about your repayment ability.

Don’t Take Out Any Major Loans

Of course, you will want to avoid taking out any significant loans around the time you’re applying for a mortgage. Every lender will want you to demonstrate your ability to manage your debts. So if you’re trying to get a car loan, student loan and mortgage at the same time, you’re not likely to be successful.

Maintain At Least 3 Months Of Spending Cash

Finally, many lenders will want to see that you have at least three months’ worth of cash saved up. This is so that you can continue to make your mortgage payments on time, even if something unfortunate were to happen. If possible, it’s good to have as large a safety net as is possible. If you’re able to put six months of mortgage payments aside, don’t hesitate. You can even invest the funds in some low-risk or guaranteed investment and they will grow over time.

The mortgage pre-approval process is not meant to be scary or intimidating. In fact, it’s an excellent time to give yourself a financial tune-up before purchasing your new home. For more information about mortgage options, contact your trusted mortgage professional today.

Are you thinking about buying a new house? Whether you’re a first-time or experienced buyer, if your credit score isn’t looking too hot it can affect how much mortgage financing you receive – or whether you’re approved at all! But don’t fret. It’s still possible to get a mortgage approved, even with credit issues. Below we’ll share a few ways that you can get a mortgage loan even if your credit is less than perfect.

Consider An FHA-Guaranteed Mortgage

For many individuals with credit issues, the Federal Housing Administration’s guaranteed loan programs are a good choice. In essence, the FHA guarantees your mortgage with select lenders, which allows them to worry less about the risk of lending to someone with past credit problems. It’s worth noting that FHA programs do come with some additional costs attached. Mortgage insurance may be assessed, which helps to protect the mortgage lender in case you default. And there may or may not be an additional monthly premium cost as well.

Do Everything You Can To Improve Your Credit Score

Before taking the next step and applying for a mortgage, you’ll want to ensure your FICO credit score is as high as possible. Call or visit the website of one of the major credit reporting agencies to get a copy of your credit report. You’ll want to review any outstanding issues on the report and eliminate anything that shouldn’t be there. For example, in the past, you may have had a credit card or small loan that went into collections yet is still in the report even though you paid it. Contact the credit agency to challenge anything that shouldn’t be on your report.

Don’t Stretch Beyond Your Means

If and when you’re approved for a mortgage, it’s critical to remember not to reach beyond your ability to pay the mortgage payments each month. Yes, it might seem like an excellent idea to get a larger or more luxurious house if a larger mortgage is offered to you. However, don’t forget that you’ll need to manage payments each month for many years and it’s tough to predict the future.

Try not to worry if you have a low credit or FICO score and you’re interested in buying a home. A great first step would be to contact your professional mortgage advisor. We’re here to help navigate the mortgage application process and can explain how your credit score will impact your chances.