Tuesday July 15, 2014
Getting a mortgage used to be a much simpler task, but now the lender must do more due diligence before approving a borrower than in the past. It’s not impossible to be approved, but there are certain things mortgage shoppers can do to expedite the process.
First and foremost, it’s important to get a copy of your credit report. Fully digest its contents and flag any discrepancies. If you’re positive you paid off that debt or late charge, dispute negative marks as soon as possible. Generally speaking, it is always a good idea to pay off debts and loans prior to applying for a mortgage, but if you just can’t swing it, keeping your debt to credit ratio under 20% will go a long way.
When filling out your mortgage application, it’s important to be as transparent as possible about all assets, debts, and incomes. Chances are, the truth will be revealed in some fashion, so it is better to be upfront from the get-go and reduce delays in the process.
Once you’ve figured out your debt-to-income ratio and are comfortable with a monthly commitment, do your best to come up with the largest down payment possible. Not only will lenders look favorably on this, but you’ll be doing yourself a favor in the long run by lowering your monthly financial commitment.
Still have questions about applying for a mortgage for your Faber home? Our sales associates will help you get on the right track and connect you with lenders and credit counselors. Give us a call today!