8 Tips To Getting Your Texas Home Loan Approved
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:
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