Getting your mortgage may sound like an impossible feat, not to mention very tricky. However, there are ways that you can improve your chances of getting your house loan approved. All you have to do is to follow these easy steps.
Be Prepared for the Interview
Don’t expect all lenders to like you. Each lender, in all states including Alabama, has their own qualifications to look for in a borrower. If you’re able to meet all the criteria, you’ll most likely have your mortgage approved right away. But if you fail to meet any of their qualifications, then expect that there’s only a slim chance that your loan will get approved.
But it might be a bit different for people in the middle. Your lenders will base your approval on the size of the loan that you are requesting, how much you can pay for the deposit, your source of income and employment status, credit history, and even any of your existing debt.
If you pass any of their investigation, there’s a higher chance that your loan will get approved.
Check Your Credit History before Applying
Lenders from all cities like Birmingham will most often investigate your credit records to know more about your repayment history. Your credit history is made of all your past loans, credit cards, mortgages, overdrafts, utility bills that are in existence for the past six years.
You can check your credit history free of charge from Equifax, the TransUnion and Experian. Just sign up on their website to get your free thirty-day trial.
Correct Any Errors on Your Credit History
As soon as you’ve checked your credit score, see if there are any errors on your credit file. This should be corrected right away. The first thing that you have to do is to talk the lender whom you had the error with. If this doesn’t work, you can always contact the Financial Ombudsman for free.
Manage Your Expenses
Manage whatever credit you still have on your credit card and never ever go over your limit. Only buy things that are necessary to prevent any overdraft. In this way, you can ensure that you’ll not be heavily in debt as soon as you apply for a mortgage. However, if you already are having some financial problems with your credit, you must, at least, control yourself from using it. Strike a balance between needs and wants.
Pay Your Bills on Time
If you don’t want to have any problems with your loan or mortgage, make sure that you do pay your bill on time. It will not only clean up your record but create a positive feedback from the lenders as well. Each time that you get behind on any of your bills gets reflected on your credit score<< Back to the list.
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Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.