Tricks and Tips on How to Convince Your Lender to Approve Your Loan

Getting your mortgage approved can be difficult. It’s a struggle to even meet the demands of the lenders. Lenders from all states including Alabama are reviewing every legal detail of the borrowers’ financial capacity including its generated income and even its spending habits. Borrowers who wish to apply for a mortgage had to get their finances straightened out well even before they apply for a mortgage. Most buyers already know the basic know-how of applying for a mortgage- improve their credit score, check if there are any errors that need to be corrected, and even avoid unnecessary spending during the application process. But here are some other tips and tricks on you can even convince them more to approve your application.

1. Put all your expenses on a credit card and have it paid off in full for each consecutive months. This will give you extra time to pay your bills since it delays your payment by a month. Moreover, it also doesn’t let your lenders see what you’ve actually been spending your money. But make sure not to put those expenditures that cost extra if you pay it by a credit card.
2. Enroll all your credit cards to a direct debit to avoid any missing payments. You may want to set the direct debit for the minimum if you can’t pay the balance off in full. You can make an extra payment as soon as you can afford it.
3. Do not exceed any overdraft limit or go overdrawn. This would only cost your payments to return and may even charge you with return fees. On top of that, it will look like you’re not managing your bank accounts really well and may lead to your mortgage application getting rejected. It would still look like you don’t manage your money responsibly even if it looks like you have plenty of income.
4. If your parents or any family member is helping you with the deposits, you have to ask them to create a letter stating that the amount was given as a gift and provide any proof or written evidence, such as bank statements, to prove the transfer. Any amount that was given as a gift or a loan will be affected by the affordability assessment. 
5. Don’t start making any offers on a real estate and then just go on a holiday. According to some experts in Mobile, applying for a mortgage can be very time- grueling because of the necessary documents and paperwork that are required for the transaction. Lenders may even request for even more information so being away for a few days can prolong the process.