6 Keys to Ensure an Approved Home Mortgage

Qualifying for a mortgage might have been easier just a few years ago, but today’s tight lending standards help ensure borrowers have the financial ability to keep the homes they buy as long as they want to. If you’re applying for a mortgage today, here’s what you can do to ensure you quality:

1. Boost your credit score to 740 or higher. Though loans are available to borrowers with lower scores, with a FICIO score of 740 or higher you’ll get best interest rates and lowest down-payment requirement.
2. Provide your income. Lenders like to see consistent income over a period of two to five years. Of course, you’ll also need enough predictable income to handle your monthly loan payment, along with property taxes and insurance.
3. Flash the cash. The more down payment you invest in your home, the better risk you are considered by lenders. Lenders consider a 20% to 30% down payment ideal, with a solid emergency fund of four to six times monthly income. You may get a loan with less, but why not to go for the gold?
4. Minimize debt. Pay down credit cards and retire car loans debt, etc. to improve your debt-to-income ratio, leaving more room in your budget for mortgage debt.
5. Tell the truth. Your loan application information will be verified through the underwriting process. Remember, incomplete or false disclosures will simply derail lender confidence in you.
6. Avoid last-minute gaffes. Lenders will calculate your debt-to-income ratio at the beginning of the loan process. They’ll also pull your credit report justr before the settlement. Don’t change the picture by depleting cash resources, increasing debt or opening new credit accounts.

Call me if you have any questions: 443-527-4375