Buying a home is a life-changing experience and many first time home buyers and repeat home buyers alike get very nervous when it comes time to apply for a home loan! Many are left wondering, “Will I get approved for a mortgage?” or “Will I get approved for a home loan in the amount I need to buy my dream home?” Today, loan officer Sonia Krietz will explore how to increase your chances of getting a mortgage (and in the amount you need to buy the home of your dreams!)
Tips for Getting a Mortgage: Check Your Credit Reports
If you’re about to start looking for a new home, it’s wise to get pre-approved for a mortgage before you begin the hunt so you don’t fall in love with a home that you simply cannot afford. But before you make this move, it’s wise to check your credit reports from all three U.S. credit bureaus: Experian, Equifax and TransUnion.
While most like to believe that credit scores are 100% accurate, this is not always the case. Mistakes and reporting errors do occur, so it’s vital that you look over your credit reports to ensure that the information is accurate. If you spot any inaccuracies, you can work to correct those errors and boost your score before you apply for a home loan.
Don’t forget to read Sonia’s article on how to increase your FICO score prior to applying for a mortgage.
Tips for Getting a Mortgage: Make Your Payments on Time
Be sure to make all of your payments in a timely manner, as late payments are an unnecessary red mark on your credit history. Plus, you’re faced with the extra fees and penalties that can result from those late payments.
It’s easy to get wrapped up in the process of searching for a home and packing up your belongings, but don’t let these things become a distraction that could harm your chances of getting a mortgage.
Tips for Getting a Mortgage: Don’t Open New Credit Lines
If you’re about to get a mortgage, don’t open new lines of credit in the six months prior to applying for a home loan. Lenders will look to see if you’ve recently obtained any new lines of credit or incurred any other debts. You could also end up in a bad financial situation where you’ve over-extended yourself financially if you take out multiple loans or credit lines in a short timeframe.
On a similar note, be sure to pay down any and all credit card balances and loan balances. The lower your debt-to-income ratio, the better your chances are of getting a mortgage in the amount you’re seeking.
Tips for Getting a Mortgage: Move When Interest Rates are Low
Interest rates do fluctuate over time, so make it a point to watch interest rates and apply for a home loan while interest rates are low. Notably, for the past decade, interest rates have been at near-zero, but that is changing as the Federal Reserve hiked interest rates for the first time in nearly ten years in December 2015. Several interest rate increases are expected for this year, but it’s always advisable to buy when interest rates are at the lowest possible. This is also true for refinancing.
Readers may also be interested to learn more about what factors impact interest rates.
Let Sonia Krietz Help You Get a Home Loan
If you’re ready to get a home loan, wish to refinance a mortgage or need help with credit repair services before you obtain a new loan, contact lending professional and loan officer Sonia Krietz, with Security National Mortgage Company. In addition to offering mortgage loan lending services, Sonia can also guide you through the process of repairing your credit and maximizing your FICO score so you can increase your chances of not only getting approved for a mortgage, but you may also be eligible for a lower interest rate!
Readers may also wish to learn more about the difference between pre-qualification and pre-approval for a mortgage loan.
You may wish to complete the pre-application form and Sonia will be in touch to help you proceed through the process. If you have any questions or concerns, you can also contact Sonia Krietz by phone at 916.385.9716.