How to Impress Mortgage Lenders


If you are ready to buy a home, be prepared to make a good impression with your mortgage lender by taking the following steps before your first meeting.You know what they say…”First impressions last.” That’s true for a first date, job interviews and a variety of other instances that pave the way for life’s happiest experiences. If you are ready to buy a home, making a good impression with the mortgage lenders is just as important. Be prepared by taking the following steps before your first meeting.

Harness Your Credit

Your credit score is one of the most important aspects in securing a mortgage. Obviously, the higher your credit score, the higher your chances of being approved and at better rates and terms. With that in mind, think ahead. A missed payment, for example, can take months to be removed from a credit report, so when you know you’ll be in the market for a mortgage, you need to be extra-vigilant about all things credit-related, explained personal finance writer and blogger Valencia Higuera.

Manage Your Spending & Pay Off Debts

In the months before applying for a mortgage, cap extraneous spending, especially using credit, as excessive spending in the months to a year before your mortgage applications can make a lender suspicious of your debt management skills.

“A high debt to income ratio can stop a mortgage approval,” Higuera said. “To qualify for a mortgage, take steps to pay down your balances. Pay more than your minimum on your credit cards, and don’t take out new debts.”

If you are ready to buy a home, be prepared to make a good impression with your mortgage lender by taking the following steps before your first meeting.Don’t Job Hop

Nowadays, the mortgage approval process is a lot stricter than it once was when it comes to proving income. Lenders want to see a reliable work history and steady income. If you really want to show off to your potential lender, you and your co-signer should be at your current jobs for around a year.

“Most lenders would want to see two-years’ worth of tax forms together with your most recent pay slip,” an article on the Lincoln Capital Lending website states.

By planning ahead and taking these few steps, you can make the best possible first impression in front of your potential lenders, getting you that much closer to your dream home and life’s next joyful moment.

 

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