Obtaining a mortgage ain’t so simple like the old days. Gone are the jumbo mortgages handed out on a whim to unqualified home buyers (a practice that led to the housing bubble collapse, by the way). Today, mortgage companies are more cautious than ever in distributing fair loans to potential owners. Don’t get left out! If you have the means to make regular payments on a mortgage, home ownership is within your grasp. Here are some tips for maximizing your loan eligibility – and the best terms – on your mortgage-to-be.
1. Conduct a credit check-up
A healthy credit score is your foot in the door to a great mortgage rate and terms. It’s an at-a-glance numerical summary of your financial past, and (sometimes unfortunately) is often the main factor taken in by brokers in determining your loan eligibility. Typically, a good credit score is 700 or up, while the minimum you’ll need to be considered on your own for a mortgage is 660. The good news is that you can get ahead of the numbers. Before you sit down with a mortgage broker, consider requesting your credit score on your own. If you see errors on your report, you can work to correct them before you sit down with a loan professional.
2. Don’t change job
What’s good for your career doesn’t necessarily mean good for your mortgage. While a loan approval process is in motion – or even in the months ahead of time – you want to show that you have stable employment. If you’re being considered, the most important element is to not leave your job, or even change your job status – for instance, moving from full-time work to part-time. Keep things nice, and even – boring, even – to maximize your mortgage results.
Although this one seems like a no-brainer, you’d be surprised at the number of borrowers who “exaggerate” elements of their personal financials – say, round up on income, or add in a few years to your tenure at your place of employment – to obtain slightly better terms. It’s not worth it. A single inaccuracy can jeopardize the status of your mortgage and is definitely not worth the risk.
4.Work with a qualified realtor
If you’re interested in starting the process of purchasing a home, partnering with the right professionals can help. Working with qualified realtor from the beginning of your home search can help educate you about the process and ensure the best possible result.