If you wish to get a mortgage these days, here’s one thing you must know getting one will be like passing through the eye of a needle unless you know how to play your cards right. The reason behind their strict rules is that many credits experience problems before because of subprime mortgage (loans given to people with poor credit history). With this in mind, you have now that idea that getting a mortgage means stable financial status. Although good financial status is a must, there are certain things that you can do in order to get a mortgage approval.
Here are some tips that will help you get a mortgage approval from different lenders.
1. Make Sure Your Credit Ratings Are Good In getting loans, credit history is a big factor to consider. You can put this situation this way, you cannot obtain a credit if you don’t have any credit background, this is like a prerequisite. Borrowing certain amount of money to a creditor is not enough. Mortgage approval is only possible if you have good credit ratings. Since most lenders are becoming more cognizant with the people they lend their money with, they tend to go for safer sides or those that can assure them of regular payments. If you credit scores a below the average rating then more likely the chance of getting your mortgage application approved is minimal. The best way is to maintain above average credit ratings.
2. the Source of Income Is Stable. If you have made up your mind to get a mortgage it is imperative to have a stable source of income. Most creditors check the employment status and salary of the borrowers to know if they are capable of paying their debt on a monthly basis irrespective of their other expenses. As for the calculations, they’ll do it in your behalf and if the percentage is high of you being able to pay it monthly then you’ll more likely get an approval.
3. Initial Payment Will Also Affect Mortgage Application. The bigger your down payment is the bigger your chances of getting a mortgage approval. Many lenders put greater emphasis to these people because it increases the equity.
4. The Reasons in Getting a Mortgage and the Property If the property involve has a bigger property value then more likely lenders will approved the mortgage application of the borrower. Most lenders also prefer those who will use the property for family use rather than for rentals. The primary reason why lenders prefer those that will make use of the property as their home is that they can be assured that the property is well maintained. There are other factors why many lenders don’t go for those who want to make use of it as rentals. Since owners of the proper will rely on the payment of their tenants the mortgage payment is also at risk, since unstable cash flow is possible.