Factors Of Mortgage Approval

When applying for a mortgage, the lender you have chosen

will take many factors into account. These factors not only

influence what type of loans you can qualify for but also

what your monthly payments will be and how many years you

will take to pay the loan off completely.

Knowing these factors and doing what you can to improve

them all can make a tremendous difference when you go and

see your lender and start the process that will get you

your new property.

Some of the basic factors apply for just about any loan but

are especially important if you are trying to get a

mortgage. The big one is, yep, credit.

How good is your credit Get copies of all of your credit

reports from the 3 major consumer reporting companies and

check each one for errors.

Many times they have errors that can be corrected in just a

few weeks and that helps boost your score. If you have

credit cards, pay them off as well as any other outstanding

bills.

A nice large down payment will always improve your chances

of being approved. If your credit isn’t completely top

notch, the bigger the down payment, the more likely you

will get improved.

If your credit is great, you can still put down as much as

possible to lower the monthly payments or decrease the

total loan time.

Above all else, don’t lie to your lender. If you tell them

you are a supervisor of a power plant and they find out you

are a UPS man who has only had the job for 6 months, you

will be totally screwed. Be honest and your lender will do

their best to work with you.