How to Up Your Odds of Getting a Mortgage
Maybe you have found that house that you have been dreaming of and are now talking to banks about giving you a mortgage. If your credit isn't that great, you may be scared that you won't get approved. You want to increase your odds of getting a mortgage, because without one there is no way that you can afford a house. How are you supposed to up your odds of getting a mortgage exactly?
Do your research. The very first thing you want to do is to figure out what your financial history is. If you don't know it, you are going to want to get your credit score. This score is going to tell you whether your credit is good or not and is the number that banks look at to determine if you are a high risk or a low risk. If your score is not that great, you may find that it is difficult to find a bank that is willing to lend you the money that you need. On the other hand if your score is great, you will find that banks are fighting for your business and may even offer you special deals to take out your mortgage with them.
Budget your money. Show banks that you go to your budget, which is going to illustrate how much money you are currently paying for housing and how much you would pay with a mortgage. When you show the banks that you will be saving money by buying a house and that you can afford it, they will be more likely to approve your application.
Have a Down Payment. A lot of first time buyers don't have the twenty percent required for a down payment on their mortgage. This is going to be a problem if you have bad credit because a lot of banks aren't going to want to take the risk. By saving up and having enough of a down payment, you are going to increase your chances of approval.
Ask someone to be your cosigner. If your mortgage is less than perfect, your bank may require you to find a cosigner to sign the mortgage papers with you and put his house on the line for you. Having a cosigner is going to definitely help you to get a mortgage loan. Finding someone who is willing to cosign the loan papers for you might be difficult to do because it is very risky for them.
Research the real estate market. You are going to have a better chance of getting a mortgage if you are planning on buying a house in a hot market. If you are going to buy something in a market that is cooling down, you are probably going to find a lot of banks aren't willing to give you a mortgage on a property that is going to decrease in value.
Find out about your neighborhood. Some bank officials are going to ask you about how much houses in the neighborhood sold for in the past. When they find out that you know how much your future neighbor's house sold for three years ago, they are going to be impressed and give you the loan
Getting a mortgage approved is getting more and more difficult everyday with the economic downturn. However, if you follow these six tips you are going to find that getting a loan for your dream house is going to be possible.
Do your research. The very first thing you want to do is to figure out what your financial history is. If you don't know it, you are going to want to get your credit score. This score is going to tell you whether your credit is good or not and is the number that banks look at to determine if you are a high risk or a low risk. If your score is not that great, you may find that it is difficult to find a bank that is willing to lend you the money that you need. On the other hand if your score is great, you will find that banks are fighting for your business and may even offer you special deals to take out your mortgage with them.
Budget your money. Show banks that you go to your budget, which is going to illustrate how much money you are currently paying for housing and how much you would pay with a mortgage. When you show the banks that you will be saving money by buying a house and that you can afford it, they will be more likely to approve your application.
Have a Down Payment. A lot of first time buyers don't have the twenty percent required for a down payment on their mortgage. This is going to be a problem if you have bad credit because a lot of banks aren't going to want to take the risk. By saving up and having enough of a down payment, you are going to increase your chances of approval.
Ask someone to be your cosigner. If your mortgage is less than perfect, your bank may require you to find a cosigner to sign the mortgage papers with you and put his house on the line for you. Having a cosigner is going to definitely help you to get a mortgage loan. Finding someone who is willing to cosign the loan papers for you might be difficult to do because it is very risky for them.
Research the real estate market. You are going to have a better chance of getting a mortgage if you are planning on buying a house in a hot market. If you are going to buy something in a market that is cooling down, you are probably going to find a lot of banks aren't willing to give you a mortgage on a property that is going to decrease in value.
Find out about your neighborhood. Some bank officials are going to ask you about how much houses in the neighborhood sold for in the past. When they find out that you know how much your future neighbor's house sold for three years ago, they are going to be impressed and give you the loan
Getting a mortgage approved is getting more and more difficult everyday with the economic downturn. However, if you follow these six tips you are going to find that getting a loan for your dream house is going to be possible.
posted by Credit Counseling at
6:05 AM
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