Things That Might Help Improve Your Chances of Getting Mortgage
Although the mortgage industry works to make it easier for first time home buyers to obtain a mortgage, there is no guarantee that everyone will qualify for a mortgage. Your loan application may be declined by the lenders in certain circumstances. Here are some of two things you can do to help improve your chances of loan approval.
Improve on Your Credit Score
With a higher credit score, you are likely to have a better chance to be eligible for a mortgage. Your track record of monthly payments and clearing dues and debts will influence your credit score. It is best to pay your bills on time and pay off some part of your debts if possible.
It may also help to avoid signing for a new credit card or a new loan in the days and weeks preceding your home mortgage application. Applying for new financing can sometimes lower your credit score because it triggers a credit record inquiry.
Save Money for the Down Payment
Barring a few exceptions (such as VA loans), your lender will require you to make a certain minimum amount of down payment for your mortgage loan. This demonstrates your commitment to buy a home and your preparedness to make the monthly payments.
It is prudent to save money every month until you are ready to meet the minimum down payment requirements. Maintain mature spending and saving habits throughout as it will also help you in the long run to make your monthly mortgage payments on time.