If you’re currently buying a home and are stressing about the kind of home to choose and which lender to go with, it can help to clear up some of the confusion surrounding the mortgage process. While mortgage applications are assessed on a case-by-case basis, here are some factors you’ll want to avoid so the timeline of your approval isn’t negatively impacted.
Your Employment Status
It goes without saying that the amount you bring in each month is a huge factor towards how much house you can afford, so having a part-time job, being self employed or even being unemployed can adversely impact your application. Instead of leaving this factor up to chance, make sure you have a job that will more than cover your monthly payment or at least the savings in the bank to take the pressure off.
The Debt You Carry
The amount of your debt has an impact on the house you can afford, but debts whether from auto loans or credit cards; can still adversely impact the lender’s perception of your finances. Before buying a home, you may want to pay down some of your debt or hash out a monthly budget so you’ll have more certainty when it comes to application time.
Your Credit Report
There are few things that will have a more marked impact on your mortgage approval than your credit history, so whether or not you have good credit will play into your application approval. While many people shy away from their credit report, ensure you look it over before submitting your application so you know what you’re dealing with and can correct any mistakes.
The Down Payment Amount
You’ve probably heard that 20 is the magic percentage to put down, and while this number isn’t needed to buy a home, it can be the right number if you have high debt or a negative credit history. While you may want to buy right away, waiting and saving up may actually improve your odds of approval and save you money in the long run.
There are many factors involved in the mortgage process and many of these things have the ability to slow down your application. But, by being aware of your credit and having a 20 percent down payment saved up, you may be able to speed up the process. If you’re close to submitting your mortgage application, contact your trusted mortgage professionals for more information.
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About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.