Everyone wants to have their own house but the problem is they do not have enough money for the construction of their house. Of course, before thinking of constructing, it is advisable to get or purchase a lot for the location of your dream house. But some are planning to buy house and lot in the loan basis.
Some person get financial help to banks and other financial institution in order to construct their house or buying a house and lot but the problem is they do not have any idea on how to start a mortgage loan.
Here are some tips to get your home loan approve:
1. Determine your credit score.
It is important and necessary to investigate and know your credit score before applying for the home loan. A high credit score have chances that your home loan application can be approve quickly. Credit scores and credit activity may have impact on loan approvals. A low credit score and credit fraud may deny your loan application.
2. Have some cash
It is a good idea to save cash before applying for home loan because chances are some financial association or banks requires the applicant to pay such as insurance payment, processing fee. If you have zero cash, you loan application might be rejected.
3. Get Pre-Approve d for Home Loan
The pre-approval process will help you decide how much you can afford and you can decide what type of house you should look for. Just need to submit financial and personal information to the lending institution and wait for the response
4. Recognize what you can afford
Analyze your income and expenses so that you will know how much you can afford. Knowing the in and out of money will make you determine how much money is available for your future monthly amortization. Do not believe easily when your lender said that you can afford that amount of money because they did not know how much you spend in everyday needs such as gas, groceries, allowance, etc. Lenders only depend on their computed amount to your income and credit report.
5. Do not quit to your job
During the application, you should stay for your job because any changes in employment or income status may delay or even reject your home loan application. Quitting to your job and changing your status to self-employed will greatly affect your loan application and lender may re-check your finances if you are still qualifying for the loan.
6. Clear your debt and avoid new debt
The less you owe your creditors the better when applying for the home loan. Your debt will determine if you get a loan and how much you will acquire from your lender because your lenders will evaluate your debt-to-income ratio before approving your application for loan. It is crucial to avoid new debt while applying for the loan because lender may re-check your application before approving your loan. Prevent from major purchasing such as financing new car or home appliances because if you have a high debt ratio, your request might not be granted.