With these 3 simple tips, you can improve your chances of completing a major part of the home-buying process by having your mortgage application accepted.
Occupational stability means that you should stay in one job for at least six months prior to your application. If you really dislike your job, compare your desire to quit with your desire to get a mortgage. Lenders will be put off by the inherent financial instability and perceived unreliability that comes with recent occupational changes.
A mortgage provider’s main aim is to reduce the risk in every loan they issue. If you’ve recently changed jobs, there is a chance that you won’t like your new role or that you’re the type of person to not hold down a job for the period needed to pay back a mortgage. If the rest of your application is unconvincing, your occupational stability could mean the difference between having your application accepted or rejected.
The deposit you pay has a huge effect on the success of your application. Many people rush into mortgage agreements with the bare minimum deposit required, when they would have been better off saving for a longer period. If you can offer a larger deposit, not only will your application be more likely to succeed, but you will also have more bargaining power when it comes to the interest rates and other terms of the agreement.
A person’s credit score is a measure used by many financial institutions to gauge the individual’s reliability. If your score is low, you may be flatly rejected credit. If it’s average, your application may be accepted, but the terms and conditions of the offer could be negatively affected. The best mortgage deals are offered to applicants with the highest credit scores, so it’s always worth trying to improve your own.
Eliminate or reduce personal debts, and avoid missing payment obligations for at least six months before you submit your application. If you have an overdraft or credit card, avoid going over the prearranged limit at all costs. If you can demonstrate through actions that you are fiscally responsible, your credit score will improve and your chances of being granted a mortgage will increase.
Edward L. Taylor Jr currently serves as a Clayton County Business Banker with Heritage Bank. With over 15 years of experience in the banking industry, Ed can provide you with the best business products and services to serve your needs now and well into the future.
Vice President Business Banker • 770-515-7032 • [email protected]