This is a Contributed Post

HOW TO BOOST YOUR CHANCE OF GETTING A MORTGAGE THIS YEAR

Getting your finances on track and working towards a better credit score are excellent ways to boost your mortgage approval chance. So, here are some tips to get started towards a home.

Check Your Credit Score Before Applying

Your credit score is used to provide certainty about whether to lend to you or not. Having a good credit score is essential when trying to obtain any credit or loan these days, especially for a mortgage. The average approval score is around 768 in the USA and UK. Bad credit mortgages are possible if you look around. But a history of missing payments on bills such as mobile phone contracts, credit-based purchases, and cash loans will all directly affect your credit score.

Check All Information is Accurate

When people apply for mortgages, giving wrong information is a common problem. Professional document readers will look at every small part of your application in great detail. So, if you lie, give false information, or make a real mistake, it will come out when you apply. So, you should do everything you can to make the most precise application using genuine documents and up-to-date, honest information. You can also have a broker check it before you apply.

Pay Bills to Boost Your Mortgage Approval Chance

Even though this may seem obvious, it’s also the most important. Your credit file is the primary item a broker looks at when you try to get a loan. If you miss a payment, it will hurt your credit score. So it’s important to pay all bills on time. A default can hurt you for at least one year, and it will show up on your credit report for the next six. If you miss just one payment, it could affect whether or not you get a mortgage. Direct debits are a good way to ensure timely payments.

Be Honest About Your Employment Situation

When you apply for a mortgage, your job situation will also be looked into. Even though it can be rewarding to work for yourself, it is also volatile for lenders. This is because working for yourself is risky. Depending on what you do for a living, your income can change a lot from month to month. From a bank’s point of view, it may seem unfair, but you need to think about how you will be able to pay back any mortgage or loan money on time each month.

Pay Off Any Existing Debts

A home loan is a big loan. So, your past debts are taken into account when you apply. When deciding whether or not to lend you money, lenders look at current debts too. In the US alone, around 39% of people often forget to pay their bills. So, it’s nothing against you when they check. And any mortgage lender has to weigh your ability to pay back your loan against other debts. They also have to look at your ability to pay for essentials like food, gas, and electricity.

Summary

You can easily boost your mortgage approval chance. You should understand your credit score. Also, make sure your information is accurate and doesn’t lie, and ensure you are debt-free.

How to Boost Your Chance of Getting a Mortgage This Year