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.
Make a Budget. You are going to want to go to the banks with information on how much you are paying for housing now and how much you would be paying when you owned your dream house with a mortgage. If you can show that having a mortgage is going to save you money on your housing budget, you are more likely to get accepted.
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.
Get someone to back you. If your credit is questionable, a bank may ask you to find a cosigner who will put their mortgage on the line if you don't pay on time. This will definitely help your chances of approval. But, a lot of people will probably not want to risk their houses on your bad credit.
Find out about the real estate market. When the market is hot, you are going to have a better chance of getting a good mortgage. When the market is cooling, banks are going to be more reluctant to loan money because the price of the property may go down.
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
With the economy not being so hot, it is getting more and more difficult to get a mortgage. Following these six tips is going to drastically improve your shot at a mortgage.
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.
Make a Budget. You are going to want to go to the banks with information on how much you are paying for housing now and how much you would be paying when you owned your dream house with a mortgage. If you can show that having a mortgage is going to save you money on your housing budget, you are more likely to get accepted.
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.
Get someone to back you. If your credit is questionable, a bank may ask you to find a cosigner who will put their mortgage on the line if you don't pay on time. This will definitely help your chances of approval. But, a lot of people will probably not want to risk their houses on your bad credit.
Find out about the real estate market. When the market is hot, you are going to have a better chance of getting a good mortgage. When the market is cooling, banks are going to be more reluctant to loan money because the price of the property may go down.
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
With the economy not being so hot, it is getting more and more difficult to get a mortgage. Following these six tips is going to drastically improve your shot at a mortgage.
posted by Credit Counseling at
6:08 AM
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