If you are in the market to purchase property, whether it is your first home or your tenth vacation home, you will need a mortgage unless you have the cash saved up to pay in full. To give yourself a better chance at getting the mortgage approval that you need, you will want to spend some time reviewing the following tips.
Check Your Credit Score
Do not make the mistake of assuming that a bad credit score means that you are not going to be able to obtain a home loan. There are sub-prime or bad credit lenders out there that might be able to help you get the money you need. To know just where you stand, you will want to go ahead and obtain a copy of your credit score, along with the details of the various lenders that are reporting you past due. You will want to verify that everything that is being recorded as late, was indeed late. If there is anything found on your credit report that you find to be inaccurate, you will want to fill out the online form so you can file a dispute. Once the dispute is handled, your credit score will adjust.
Save Up Every Penny
You will want to have as much of a down payment as possible. After all, the more of your own money that you are willing to put down for the loan, the easier it will be for the lenders to see that you are serious. You cannot take out any loans or credit card advancements in order to increase the amount of your down payment. However, you can work overtime or ask for a cash gift from a close friend or family member. The more you have for a down payment, the easier it will be for the lender to approve the loan, as well as give you a good interest rate. The lower your interest rate, the more of your monthly payment will be applied to the principle balance. This means that you might be able to pay off the mortgage sooner than expected.
Now that you have those tips to take into consideration, you will want to take a few moments to figure out which tip you will act on first. The sooner you get the ball rolling, the sooner you will have your wholesale mortgage and the sooner you will be moved into your new home.