An Easy Guide For A Mortgage Loan Approval In Texas Pt 2

8 Tips To Getting Your Texas Home Loan Approved

Part 2

4. Take Advantage Of A Mortgage Calculator

A mortgage calculator is a handy tool you can use to see if your finances/income can support a payment scheme. The calculator highlights how much you would be required to pay for different homes, loan tenure, interest rates, and annual income.

5. Know What You Can Afford

Analyze your finances and income to see what you would be able to afford comfortably. See how much you can spend on a home without stretching your finances too much. Doing so eliminates the risk of falling in love or bidding on a house you wouldn’t afford, hence no financial and emotional stress.

6. Boost Your Savings

Never walk into a lender’s office with no cash for a down payment. Most lenders will require you to have at least 20% of the home’s initial value before they can approve your loan. Whatever amount you had saved for the home, beefing it up will not only give your credit position a boost but also help lower your total mortgage balance. It is worth noting that, a part of your savings will go towards paying for several other expenses that come with property purchase. These include home appraisals, title recoveries, and legal fees, among others. Cutting down your spending and budget to save more or looking for extra income streams to save for the house will go a long way in boosting your savings.

7. Make Sure All Required Documents Are Ready

You will need an up-to-date ID and correct, current physical address to be eligible for a mortgage. You thus need to ensure all necessary documents are in your name and current physical address. Prepare all financial documents that the lender may need before setting foot in their office. Most lenders will need proof of income (payslips, employment certificate, ITR, etc.), relevant collateral documents, government-issued ID, and revenue for self-employed persons. Have these documents ready when submitting the application.

8. Open Your Lines Of Communication

Your official communication channels/lines must always be available, just in case the lender decides to call. Keeping the lines open means you’ll be able to respond to any requests they make promptly. This is especially crucial soon after applying. You don’t want to miss out on the loan simply because you didn’t see their call or weren’t able to respond to their email on time.

Contact us or call us anytime to speak to a qualified mortgage professional directly. Click here to go to the first article in this series.

An Easy Guide For A Mortgage Loan Approval In Texas Pt 1

8 Tips To Getting Your Texas Home Loan Approved

Part 1

Are you looking to buy a home but not sure where to start? Well, the first step to take would be to get your finances in order. This means checking to see how much you have saved for the purchase and if you are eligible for a home loan. Almost every financing institution will look into your credit score and financial history before approving your application. Whatever your credit rating is, you still might want to boost your chances of having the loan approved. Here are a few tips on how:

1. Know Your Financial Capacity

Lenders will, without a doubt, look into factors such as your credit history, income, and debt service ratio when processing your loan. Putting yourself into the lender’s position can help you identify areas you might need to work on to improve your chances of getting the loan. This means evaluating and determining your financial capacity even before contacting the lender. Check to see how much you have saved for the down payment, liabilities, monthly income, and assets to see if it’s enough to qualify for the loan. Talking to your preferred lender about this (beforehand) could help too.

2. Ensure Your Credit History Is Clean

Most people never take a chance to review their credit history, at least not until they want to apply for a loan. While you might have been able to pay all your bills and debts on time, your credit report might still have some errors. You might also have forgotten to pay a loan from another lender, all of which is recorded on your credit records. It would thus be wise to take a moment of your time to review your credit rating every once in a while to see if it’s up to date and free of errors.

Start cleaning your credit history by paying bills on time, clearing any unpaid loans, get a certificate for the same, and have the report updated. Be sure your credit history is clean before applying for the loan to boost your chances.

3. Create A Sense Of Financial Stability

Many lenders will dig deeper into your financial records to see if you are stable financially or not. That said, strive to maintain a steady cash flow and avoid getting into a new debt before and during the processing period. This means sticking with your employer, avoid making significant purchases, or quitting your job to start a new business. Lenders will consider you a risky client, hence deny your request.

The next step would be to keep your credit card balances as low as possible. While you could still continue using them, avoid any urge to pay for a trip using the credit cards, co-signing another loan, or financing a new purchase, say a car or boat.

You can use any of the interactive features on our website or call us anytime to speak to a diligent mortgage professional directly. We hope to work with you soon! Click here to go to the second article in this series