If you are thinking about buying your first home, you are preparing to achieve a major life milestone and obviously have reason to be feeling good about things. But those good vibes could come crashing down quickly if you don't get approved for a mortgage. Getting approval from a real estate mortgage company can be much more complicated than just filling out another credit card application. If you want to increase your chances of success the first time, here are some tips that might help.
Run a Full Credit Check on Yourself
Did you know that it's possible to get full copies of your credit reports from all three major bureaus? Yes, you have the right to look at the same paperwork your potential lender will see when you apply for the mortgage. Look at your credit score and then go over the report line by line to make sure everything is accurate. If you wait until the lender points something out to you, it's probably too late to save that application. Don't apply for a mortgage until you are sure the information the credit bureaus are sending is 100 percent accurate.
The Bigger Your Down Payment the Better
If you have a particular house in mind before you apply for the mortgage, it can be helpful to you if you can demonstrate to the lender that you can afford to put down a significant chunk of the purchase price up front. Yes, they will still look at your complete financial picture, but if you can bring down the final amount of the loan through a higher down payment, this could increase your chances of approval or at least get you better terms for the loan. If you need to wait a few extra months to save up some extra cash for the down payment, it's likely worth the wait.
Organize Your Paperwork Before You Meet with the Lender
You want to have your entire financial life in front of you on paper before you walk into the lender's office for the first time. This includes paycheck stubs, income statements, tax returns, and anything else you think might help. If you show up for the meeting with the lender but don't have all of the paperwork they need, you are not only going to delay the process, you could also cause the lender to think that you are not taking the situation seriously.
If you want to get approved for a mortgage on your first application, make sure your credit report is accurate before you apply, get your paperwork fully situated and organized, and don't be afraid to wait a few months if it means you can put down a larger down payment. For more information, reach out to a professional like Nicolle Dupont.Share