Improve Your Mortgage Approval Chances
Cash. Start to conserve your cash. It’s smart to pay off debt, but in order to get a mortgage, its often better to have cash in the bank. Sell things that you don’t need as a way to generate cash.
Employment. Mortgage lenders like to see a stable job history so don’t switch jobs unless its in the same field. Ask your Mortgage Professional if you have concerns.
Try to change your income from commission or bonuses to salary or straight hourly. Lenders don’t like variable income.
Education. If you are in college, you should plan to complete your degree and then work in the field that you studied. Then, your time in college will count toward job stability. Lenders don’t like to see you take a job in an entirely different field.
Credit. Correct errors on your credit report. Pay rent, credit, debts, child support, etc. on time. Don’t add new debt, don’t make changes to credit without discussing a plan with your Mortgage Professional. See Do’s & Don’ts During the Loan Process as those guidelines also hold true for the period before you apply for a loan. Follow the steps in Credit Improvement Tips.
Spending time improving your credit to buy a house can make a big difference over 6 months to a year.
Personal. Finalize any lawsuits or divorce proceedings as these will make it nearly impossible to get a mortgage.
Preparing your finances to buy a house is a bit different than general financial improvement. You absolutely need to find an excellent Mortgage Professional and work with them to create a plan based on your situation.
Ask your employer for a raise now so you’ll have documentation of your new pay rate when you apply for a mortgage.
Thinking of buying a home in the Portland, Oregon area? Checkout our First Time Home Buying Classes!Getting Your Financial House in Order,
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