Are you buying a home for the first time? Congratulations! Buying your own home is an excellent way to build your net worth while living in a space that you can renovate and truly make your own.
If you’re going to be taking out a mortgage to help pay for the up-front costs of your home, you’ll want to get a head start on the approval process.
With that in mind, below are four handy tips to ensure that your mortgage application is approved on your first try.
Gather All Of The Necessary Information And Paperwork
You’re going to need as much financial data as possible so try to prepare your past two income tax returns, pay stubs and other details ahead of time. It may also be helpful to create a quick budget to show your lender how your income stacks up against your monthly bills.
Maintain A Clean Credit History
It likely goes without saying that you’ll need as clean a credit history as possible in order to ensure a quick mortgage approval. If you think that there may be some negative items on your report, try to have a copy pulled before you see your mortgage lender as they’ll be asking you about them.
Don’t Try To Fudge Any Facts On Your Application
Your mortgage lender is legally and professionally obligated to perform a significant amount of due diligence on you before they are able to process your approval. If you’ve lied on your application it is likely to be discovered and will be seen as a serious breach of trust on your part.
Even if your financial picture isn’t all that strong it’s far better to be honest than to try to hide or falsify your data.
Stay Stable
A mortgage lender will check and recheck your employment, bank accounts and credit during the loan process, usually at the beginning and at the end. Make sure that your financial picture is the same. It’s not good at this time to switch jobs, do not overdraw your bank account and most importantly, do not make any large purchases during this time. Any of these things can cause a pre-approval to turn into a denial at the last minute.
The above tips are just a few ways that you can work to ensure that you have a better chance at being approved for your mortgage. If you have other questions or for more information, contact Get started on your home purchase by applying online! Or contact Jolynn at (405) 256-5110.