Buying a house is obviously a stressful process, so learning the best way to qualify for a mortgage loan now will help you later down the road!
The best way to start is to know you credit score. It only takes a few minutes to do so and is quite an easy process. Some homeowners never end up doing this and then only realize their score is too low when they are already rejected for a loan. If your score is below 680, lenders are allowed to deny your request, so make sure you know what your score is before applying!
Make sure to save up your cash. Many Mortgage lenders require a down payment, so if you are unable to fork up any cash, be prepared to be rejected! Each down payment differs depending on the type of loan and lender you are working with. Keep in mind that this is not the only expensive you will need to be able to cover. There are also closing costs, home inspections, appraisals, title searched, and application fees to cover as well!
Also make sure to not quite your job during this process! This is a crucial step, because any changes to your employment or income can delay or even stop your mortgage approval process!
Another good tip is to start paying down your debt and avoid stacking up any additional debt. Before being approved for a mortgage, lenders evaluate your debt to income ration, so if you have alot of debt, you can be denied for a lower mortgage or denied all together! Don’t let your guard down once you are approved, lenders will re-check your credit before closing as well.
Getting pre-approved for a mortgage loan is a very responsible choice. This way you know what you can and cannot afford before you start looking. All you need to do is contact a mortgage lender and submit your financial and personal information and wait for a response. This way, you know what your budget will be. By following these simple steps, you can make the house buying process slightly less stressful!