Tips in Getting a Faster Mortgage Approval
Many lenders these days don’t just give approval to those aspiring mortgage borrowers more so they have to pass the prerequisites needed for a mortgage otherwise they’ll request will be denied. Strict mortgage approval is the product of the crisis that many lenders were able to experience in the past years wherein they opt to give this so called subprime mortgage. And so, if you wish to be granted by the lenders a mortgage loan, you need to have a secured financial status. Although good financial status is a must, there are certain things that you can do in order to get a mortgage approval.
Luckily, this article will give you general directions to follow if you want to lenders to approve your mortgage application.
1. Good Credit Scores. In getting loans, credit history is a big factor to consider. This is one the reasons why many people think of debts or loans as a catch – 22. It is not enough to borrow some money in a certain lending company, You need to have good credit ratings in order for your mortgage to get approved. As of today, many lenders choose the safe sides in lending money to potential borrowers. If you credit scores a below the average rating then more likely the chance of getting your mortgage application approved is minimal. The best way is to maintain above average credit ratings.
2. Secured Employment Status. Prior getting a mortgage, you have to make sure you have a stable source of income. It is already a protocol for creditors to check how much you are earning monthly so that they’ll know if you can maintain regular monthly payments of your debt considering you still have other expenses. They will of course do some calculations to determine if your monthly salary is enough to pay for your credits.
3. Initial Payment Will Also Affect Mortgage Application. The bigger your down payment is the bigger your chances of getting a mortgage approval. The equity of the loan also increases if there is a significant amount of money in the initial investment.
4. Type of Property and the Objective of Getting a Mortgage. Lenders will usually approve those mortgage applications that involve high value properties since they considered this is a good investment. Most lenders also prefer those who will use the property for family use rather than for rentals. Most lenders prefer those who want to make use of the place as their dwelling place because they want to see to it that the house is in perfect condition. There’s a reason why most lenders don’t go for those mortgage applicants who wants to make use of the property as a rental. The reason is that mortgage payments is dependent on the rental income.