While it is true that a great factor in the approval of your mortgage loan depends on you, there are other factors commonly considered by the lenders before they give you a thumbs up for your mortgage application.
1. Credit Report
The three major credit bureaus that can provide your credit report are Equifax, Transunion and Experian. According to statistics, errors are present in 40 percent of credit reports, that is why it is very important to examine the credit report for these errors may be included in your mortgage and you may get high interest rates or you may not get the mortgage at all.
2. Credit Cards
The mortgagors become suspicious of new credit cards or close accounts when applying for a mortgage.
3. Outstanding Loans
Repay all loans before applying for a mortgage, for this may affect the approval of your mortgage.
4. Revenue
It is recommended that you should not change jobs or leave your job before applying for a mortgage. A steady income will give you more points to get the mortgege.
5. Availability of Funds
Apart from from a deposit, you must take into account other expenses such as closing costs and make sure you do not purchase anything that could consume your available funds.
6. Advance Payment
Bigger downpayment will enable you to get a lower interest rates on the mortgage.
7. Interest Rate
Always remember that interest rates are changing continously. It is preferable to cponsider the lock-in waranty costs that tou still have the advantage should there be an increase in interest rates. This will determine how much you will pay each month.
8. Price Range
A lender will not approve a mortgage whose price you can not afford. From the assessment of your current financial situation and by determining your debt to income ratio, the lender can determine the price of your property.
9. The Lender
According to financial experts, it is not a good sign if a lender denies twenty percent of those who applied for a mortgage. You should know your lender and ask about the statistics on mortgage applications which they turned down and approved, for your insurance.
10. Honesty
Always be honest in filling out all information that the lender requires. This may cause disapproval of you loan. Beware of providing incorrect information for the lender may not be willing to work for you.