• May 23, 2024

Tips on How Getting Approved for a Mortgage

Mortgage approval is based on several different factors. If you want to purchase your first home, you’re most likely going to have to go through a mortgage lender to make it happen. In order to qualify for the mortgage rate that you absolutely want, your application is going to have to look attractive in the eyes of the lender. Here are some tips that can potentially improve your chances of getting approved for a mortgage.

Obtain a Credit Report

Take a look at your credit report. What are your three scores currently listed at? Your credit score plays a major role in determining what type of mortgage interest rate you’re going to see – and it’s crucial that you get the lowest rate possible. Be sure that you check for any mistakes on your reports. It may be rare but misprints or inaccuracies do occur from time to time. Be sure to report them and fix them as soon as possible to get your credit back into good standing.

Fix Your Credit

The higher your credit score, the better your mortgage rate will be. This can’t be stressed enough as over time, the interest can really affect your finances. With due diligence, you’ll be able to fix your credit score and pay your bills on time. Keep your credit balances low and reduce the amount of debt that you owe also.

Large Down Payment

If you throw down a hefty down payment, it’ll show the lender that you’re financial situation is in the green. It’ll also increase the chances on getting approved for your mortgage as well. You want to prove to the lender that you have the capital to afford your monthly mortgage payments without any delinquencies.

Bio: Kuba Jewgieniew is the CEO and founder of Realty ONE Group, which has made INC. 500’s list of fastest growing companies in America for the 6th consecutive year, and was ranked top 10 in the nation for closed transactions by Real Trends.