8 Tips To Getting Your Texas Home Loan Approved
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.
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.