Buying a house is a very stressful process. It takes a lot of time and preparation. If you are not prepared well before you apply for a mortgage, you’ll have less chance of getting it approved. Here are some ways you can get your mortgage approved faster.
Have a good credit score
You should have your credit report ready and the credit score should be good. Before submitting an application for mortgage, review your credit report and see if it’s good enough to apply for a loan. If not, then wait for some time more, make your credit score better and then apply for the loan. You need to find out what is the minimum credit score requirement in order to apply for a loan.
Have cash in hand
You should have some cash in your hand to make the down payment before you visit a mortgage broker. On average, a minimum of 3.5% down payment is required. If you can afford, it is better to pay more as down payment. That way, your mortgage balance will go down. Besides down payment, there are some costs involved in getting a mortgage. These include fees for home inspection, home appraisals, application fees, etc. You need to pay all these before your application can be closed.
Have a full time job
You should stick to your job during the whole period of mortgage processing. If you quit your job in the middle of the process, it might affect your mortgage decision. If you switch job while your application for mortgage is still being processed, then the information you provided in your application is no longer valid. So, you need to fill in new information regarding your job and delaying the whole process.
Lower your current debt and avoid taking new debt
You don’t need to clear all the balances of your credit card, but you need to lower that balance. You debt-to-income ratio is analyzed by lenders before they give you mortgage.If you have a high debt-to-income ratio then there is high chance that your application may be rejected. Try not to make any major purchases before your mortgage application gets approved. Also, do not apply for any more credit card or loan.
Before you apply for a mortgage, it’s important that you educate yourself about the different terms and conditions of mortgage. It will save you from disappointments later.