All of us want a house that we can call our own, even if a lot of people are still not able to pay the price in full. However, thanks to mortgage loans, anyone can now buy their dream house while paying the amount that they afford. It is easy to apply for a mortgage loan, but getting approved is another story.
If one wants to increase the chances of getting approved for a mortgage loan, then we highly recommend reading the following tips.
Include All Your Income Source
One way to get approved and increase your loan amount is to include all of your income sources. You can start from your child support, work allowance, disability income if there is any, current employment, foreign income, retirement or pension, Social Security Income, and Government Annuity and more. It’s best to check Home Loans Fort Worth TX to know which other sources of income can be included.
Maintain Stable Cash Flow
Financial stability is vital if you want to apply for a mortgage loan, so make sure to impress your lender that you have a steady flow of income. Show them that you have job security. It is recommended that you should stay with your current employer, and avoid becoming self-employed. Avoid changing your job for a lower-paying one and save up your savings to secure your loan better.
Avoid Private Mortgage Insurance
Some mortgage loans require you to put at least 10% downpayment apart from the other fees depending on the loan you applied. However, we highly recommend that you should avoid PMI or Private Mortgage Insurance at all cost by paying up 20% down payment. Remember, a PMI is an insurance that protects the lender in the case you fail paying up your loan. Also, it is proved to be costly, so it’s better off paying a 20% down payment than the PMI.
Improve Your Credit Score
Your current credit score and history determines whether or not a mortgage lender will approve your loan application, and how much they are willing to lend. Check your credit report regularly and fix any errors as soon as you can. You should also pay your debts on time, and better if you can pay it in full. Moreover, avoid maxing out your credit cards. And try not to make any massive purchases and avoid opening new credit accounts.
Add a Guarantor
Some Home Loans Fort Worth TX allows you to add a co-borrower so that you can use this to your advantage. It can either increase your mortgage loan rate or get yourself approved for one. For example, your DTI Ratio or Debt-To-Income Ratio is stopping you from qualifying for a mortgage, and you can ask someone (usually a family member) to help you. This way, you can add their income to your total revenue and increase your DTI Ratio. o
Always be Ready
Communication is essential in all negotiations, so make sure to keep your line open and respond to your mortgage lender on time. This way, you’ll get to have all the information needed to get approved like the requirements, fees, costs, etc. Be sure not to miss any requirement and don’t be afraid to ask questions to make sure nothing is amiss.