If you wish to get a mortgage these days, here’s one thing you must know getting one will be like passing through the eye of a needle unless you know how to play your cards right. It is practically a feasible move for many lenders since there had been a crisis brought subprime mortgage that is why they tend to be firmer with their guidelines in availing a mortgage. With this in mind, you have now that idea that getting a mortgage means stable financial status. Getting a mortgage is still possible so long as you know how to go about it.
If you want to know what those guidelines are then you can read the following.
1. Good Credit Scores. In getting loans, credit history is a big factor to consider. This is one the reasons why many people think of debts or loans as a catch – 22. Keep in mind that it is not enough that you have owed some money to a certain credit company. You need to have good credit ratings in order for your mortgage to get approved. As of today, many lenders choose the safe sides in lending money to potential borrowers. Thus, if you have a below average credit rating then that is considered a risky investment. Good credit ratings are preferable that’s if you want to get your mortgage application approved.
2. Secured Employment Status. Prior getting a mortgage, you have to make sure you have a stable source of income. It is already a protocol for creditors to check how much you are earning monthly so that they’ll know if you can maintain regular monthly payments of your debt considering you still have other expenses. They will be the ones who will do the math and if the results are good then you’ll be granted a mortgage loan.
3. Initial Payment Will Also Affect Mortgage Application. The bigger your down payment is the bigger your chances of getting a mortgage approval. The equity of the loan also increases if there is a significant amount of money in the initial investment.
4. Type of Property and the Objective of Getting a Mortgage. Lenders will usually approve those mortgage applications that involve high value properties since they considered this is a good investment. If you intend to use the property for rental purposes then more likely the lenders will not approved your plead since they prefer those that will use it as their own dwelling place. This is for a reason that if the borrowers will be the one who will occupy the place then they will more likely make sure the house is in good condition. There’s a reason why most lenders don’t go for those mortgage applicants who wants to make use of the property as a rental. The reason is that mortgage payments is dependent on the rental income.