Getting a mortgage in California may seem like an impossible task. However, it is not always that tricky and there are a couple of things you can do to improve your odds of getting approved.
Before applying for a mortgage, put yourself in the shoes of the lender. By offering you a mortgage, the lending institution is risking its finances for your sake. Like is expected, the lender wants borrowers who are less risky to lend to. Make yourself a less risky borrower.
Follow the California mortgage tips below to increase your chances of getting approved for financing.
1. Fit the lender's criteria
Lending institutions have their own methods of deciding whether a borrower falls within their mortgage approval criteria. Therefore, do not expect all lenders to approve you. However, if you know what the lenders consider when evaluating applications, you can take steps to improve your odds.
Lenders generally consider the following when determining whether to approve you for a mortgage:
• Amount of your existing debt
• Your general recurring expenses
• Your average credit rating
• Your income and employment status
• The amount of deposit you have
• Size of loan you are applying for
If you meet the specific criteria set by the lender, chances are that you will get approved for a mortgage. However, nothing is guaranteed.
2. Repair your credit score
Repair your credit score before applying for a mortgage. You need to convince lenders that you have a habit of paying your debts on time and hence paying back the mortgage won't be a problem. Your credit history will indicate your debt paying habits. Check out this webpage to learn more.
Your credit history shows records of your past mortgages, overdrafts, loans, credit cards and even phone and some utility payments. The records for the accounts that were active over the last six years are usually listed in the credit history report.
Check your credit score before applying for a loan. You can request for your credit report for free from the national credit bureaus. Go through the report and check it to ascertain that the information provided is correct. If there are some errors, for example, debts that you paid have been listed as unpaid, contact the credit bureaus to have them corrected.
3. Manage your existing credit carefully
Check your current credit and make sure your payments are up to date. This should ideally be done a few months before you apply for a mortgage. Make sure any outstanding debts and cleared and that you don't have too much debt. Otherwise, the lenders will think that adding a mortgage debt to your existing financial obligations will be too much for your too handle. Also, make sure you are not getting too close to your credit limits as this could be a sign you are at the edge of your finances.
You should make it easier for lenders to approve your mortgage application by making yourself a less risky borrower. Following the three California mortgage tips above will increase your chances of getting approved for financing.
Follow the California mortgage tips below to increase your chances of getting approved for financing.
1. Fit the lender's criteria
Lending institutions have their own methods of deciding whether a borrower falls within their mortgage approval criteria. Therefore, do not expect all lenders to approve you. However, if you know what the lenders consider when evaluating applications, you can take steps to improve your odds.
Lenders generally consider the following when determining whether to approve you for a mortgage:
• Amount of your existing debt
• Your general recurring expenses
• Your average credit rating
• Your income and employment status
• The amount of deposit you have
• Size of loan you are applying for
If you meet the specific criteria set by the lender, chances are that you will get approved for a mortgage. However, nothing is guaranteed.
2. Repair your credit score
Repair your credit score before applying for a mortgage. You need to convince lenders that you have a habit of paying your debts on time and hence paying back the mortgage won't be a problem. Your credit history will indicate your debt paying habits. Check out this webpage to learn more.
Your credit history shows records of your past mortgages, overdrafts, loans, credit cards and even phone and some utility payments. The records for the accounts that were active over the last six years are usually listed in the credit history report.
3. Manage your existing credit carefully
Check your current credit and make sure your payments are up to date. This should ideally be done a few months before you apply for a mortgage. Make sure any outstanding debts and cleared and that you don't have too much debt. Otherwise, the lenders will think that adding a mortgage debt to your existing financial obligations will be too much for your too handle. Also, make sure you are not getting too close to your credit limits as this could be a sign you are at the edge of your finances.
You should make it easier for lenders to approve your mortgage application by making yourself a less risky borrower. Following the three California mortgage tips above will increase your chances of getting approved for financing.