Purchasing a home is something that many people have the desire to do at some point in their life. There are several steps leading up to purchasing a home that must be met in order for a home to actually be purchased and become yours. One crucial step is getting approved for the loan needed to buy your home. This is known as your mortgage loan. When it comes to get pre-approved or approved for your mortgage loan, there are certain factors that are taken into consideration. In order to make sure that you are in a good position to get a loan, there are certain things that you should do. Here are three tips for getting approved for a mortgage loan.
Keep Your Job
If you do not have a job then it is often very difficult to get approved for a mortgage loan. Your loan officer will explain to you that they are looking for a source of income not only currently, but also in the future. It is this source of income that will allow you to pay your mortgage each month. They will also want to see your tax information regarding this job to see exactly how much you made the previous year. Check stubs from the current year may also be required. This means that if you are currently in the process of changing jobs or unemployed, then this is not a good time to purchase a home because you likely won't be approved for the home loan.
Save For A Down Payment
If you plan on purchasing a home, then saving up for a down payment is an excellent idea. This down payment will decrease the amount of money that you need to borrow for your home loan, which will increase the chances of you being approved. As an added bonus, putting money down on a home will decrease the amount of money that you have to pay on your mortgage loan each month.
Don't Make Any Big Purchases
When you are trying to get approved for a mortgage loan, refrain from making any big purchases, such as a car, boat, RV, etc. If you were to make a big purchase like this, it would greatly change your debt to income ratio. This could tip the tables and stop you from getting approved for your mortgage loan. Instead, purchasing your home first, and then considering these purchases is the way to go.
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