Posted onJuly 17/2015
Applying for a mortgage is a pivotal moment in the lives of many. It is a big step into a more stable lifestyle, one that you can enjoy alone or with a growing family. It takes great consideration and thought to decide whether or not you should apply for a mortgage and when you are truly ready. By being mindful of the things that will affect your ability to qualify for a mortgage, you can avoid any mistakes or mishaps.
Tips to Qualify for a Mortgage
- Be at your place of employment for at least a couple years or be employed full time. How your money is being made will affect the mortgage application.
- Get rid of any and all credit card balances.
- Pay off all loans, student loans, co-signs, etc.
- The type of mortgage or home you intend to purchase will play a role in your qualifications. Ask a broker or lender what mortgage they feel is best.
- Your credit rate should be consistent and in good standing for a while before you apply for a mortgage.
- Don’t apply for any other credit lines prior to filling out a mortgage application.
- Watch out for lenders who raise the rate above the industry’s average.
- How much you can pay for the down payment will help you get qualified.
- Any other mortgages or anything you have co-signed for will also affect your ability to get a mortgage.
- Whether or not you have a high ratio mortgage or conventional mortgage will greatly affect everything. Research the differences between the two.
Basically, there are seven major factors that will play a role in your ability to apply and gain a mortgage loan. With so many factors that matter when you apply for a mortgage, it’s always wise to stay on top of the game. Not only do you need to cater to your credit score, but you need to stay on top of the mortgage rates and current status in the industry.
Qualifying for a mortgage is something that should be taken seriously. Without the right circumstances, qualifying for a mortgage is difficult, but qualifying for a good mortgage with good terms is even harder. Unless you have good credit, a down payment, and have been employed with your current job for a significant enough amount of time, the chances of getting a mortgage are slimmer.
Talk to the experts at Northwood mortgage today to see how we can help!