Finding the perfect mortgage is only half the battle when it comes to purchasing your new home.
Once you have settled on the right mortgage product, whether it is a 30-year Fixed FHA or a 5/5 ARM, you will need to be approved for the loan before you can move any further in the process.
Whether you have been denied for a loan in the past, or this is your first time applying for a mortgage and you aren’t sure what to expect, you should speak with a mortgage professional before you even begin the process.
A professional will be able to walk you through the requirements of different loan products and help you to be as prepared as possible when it comes time to apply for your mortgage.
The easiest part of the equation to change is the amount of the loan you are applying for. The less you need to borrow to purchase your home, the more likely you will be to get approved for your mortgage. At this point, it could be time to turn your house hunting in a different direction. Start looking for less expensive houses and you may be surprised at how quickly a no turns into a yes.
Another great option to help you get approved for your loan is to find a cosigner. A cosigner is someone you trust, who must also trust you and must be willing to sign for your debt. In other words, the cosigner will commit to a binding legal agreement to make your mortgage payments in the event that you stop making them yourself.
Don’t hesitate to wait. If your credit score is stopping you from getting approved, wait and work on improving your credit score, reduce your debt and increase your savings.
Shop around for another lender. If the first lender you approach rejects you, there’s no reason not to try out a few other options. If every lender rejects you for the same reason, though, you’ll know that it’s not the lender that’s the problem, it’s your financial situation. Your only choice at this point is to fix the problem.
If you start saving early, stay on top of your credit, and work with a mortgage professional, you will most likely find that the loan approval tips above aren’t necessary. However, if you do find yourself in a situation where you have been denied for a mortgage and you aren’t sure where to go from there, give us a call today! There may be more options than you think!
Contact a licensed housing specialist now! 602-429-6789