4 Ways To Increase Your Chance Of Getting A Mortgage
Increase Your Chance Of Getting A Mortgage: Make It Happen
If you are looking to purchase a home then this is the article for you where we will look at the different ways to Increase Your Chance Of Getting A Mortgage. This is not to say that you can’t get a mortgage with your current credit and financial situation, but if there is a way to make it that much easier to get a loan, then those options should be tried and used. As with any mortgage that is looking for an approval you are looking to make the best case possible for you. You should always lead with your best foot forward, and the 4 reasons below can only help your case.
1. Paperwork, Paperwork, Paperwork
This is one of the main reasons on how you can Increase Your Chance Of Getting A Mortgage. When you are going through your document list for a mortgage (30 days of paycheck stubs, 60 days of bank statements, 2 years of tax returns and W-2s, P&L for self-employed borrowers, homeowners insurance information, asset documentation for retirement accounts, Identification, purchase contract, and Letters of Explanation) you can make sure that everything is submitted as an entire package so that nothing can risk getting lost of misplaced. In terms of a mortgage, the more documents you can have, the better. You will want to document all debts as well such as student loans, auto loans, and credit cards.
2. Down Payment
Another of the ways to Increase Your Chance Of Getting A Mortgage is by putting a large down payment on the home of your dreams. Granted, everyone can’t afford large down payments, but if you have saved or have access to the funds, it is in your best interest to put that money down. It is not a guarantee, but if a lender sees that you are putting a sizeable amount of money down, it gives the impression you can handle your finances and also gives confidence you won’t let the house slip into foreclosure since you are fully invested.
3. Credit Score
Since you know that mortgages can be had with a 620+ FICO credit score and in some cases as low as 500 FICO, it is always smart for you to try and have the highest credit score as possible. If you are in the market for a Conventional Mortgage then you will need a 740+ FICO score in order to get the best rates available and anything lower than that will increase your rate accordingly. In preparation of getting your loan it is smart to pay down revolving debt so that your utilization is kept at a minimum and ideally under 30% for maximum credit score benefit.
4. Avoid Late Payments
This is one way to sabotage yourself and chance to get a mortgage and that is to have a 30+ day late pay within the last 12 months. In order to Increase Your Chance Of Getting A Mortgage you need to ensure that late pays, if any, occurred well in the past and not consistently. When your file is getting reviewed by underwriters, they are going to look for current late pays and then what your history says about you. Fact of the matter is if there is doubt you know how to handle your finances, your mortgage might be looking to get denied.
As you can see, these are 4 ways to Increase Your Chance Of Getting A Mortgage. These reasons may not be for everyone, but keeping them on your mind can only help you down the road. As always, if you have any questions or would like to get your home purchase started, please reach out to me ASAP at 888-900-1020, email@example.com, or www.loanconsultants.org. I look forward to helping each and every one of you and making sure everybody gets a loan!