As a first-time homebuyer, you might think that you have no chances of having your mortgage approved. This is simply untrue, as a lot of people who applies for a first-time mortgage gets approved- as long as they comply with most of the requirements and qualifications.
Below, we will discuss how you can increase your chances of getting your mortgage approved. Make sure to keep these things in mind before talking to a mortgage broker in Phoenix.
Take a Look at Your Credit Score
Your credit score will greatly affect your mortgage application. There’s no excuse not to, as it literally takes a few minutes and a few clicks to know what your credit score is. You can get your credit report at specific websites, and you would not have to pay anything for it.
The higher your credit report and score is, the higher your chances are of getting approved. However, if you have a bad credit score, then you might want to work on that first before applying for a mortgage, as you will most likely get declined if you apply with a low credit score.
Stick with Your Current Company
You would want to make sure that you have been working for the current company you are working for a couple of years now. You should also avoid resigning or moving to a new company before your mortgage is approved. This will make you a lot more credible as a borrower, and if you have a steady and regular job, then the lender can make sure that you will be able to pay for your mortgage loans on time.
Pay All Your Debts
Before applying for a mortgage, you have to make sure that you will clear all your debts first. If the lender does a background check on you and sees that you still have a couple of debts lying around, then they might decline your request for a nee mortgage.
Getting a mortgage is you trying to borrow money from a company, and if you’ve still got a lot of payables, then this might give them the impression that you are not ready to take on a brand new debt just yet.
Don’t Go Overbudget
If you finally found your dream house but you sadly cannot afford it, then do not try to push through with it by lending from a mortgage company. They will most likely take a look at your current salary and bank statements. If they see that your earnings are not enough, then you will most likely get declined.
Go for houses that have reasonable prices and apply for those instead. You can try saving up for your dream house and try your luck in the near future. For now, you can settle on what you really need.
Applying for a mortgage is not easy, but you can get approved if you know the proper steps and if you prepare well enough for it. Talk to your mortgage broker first and ask about the requirements so you can prepare beforehand.