Buying a home is probably one of the biggest investments in a person’s life. Whether it’s a pretty house in the suburbs or the one with a terrace on a hill, a beautiful beach house or an apartment in the heart of the city, a house reflects its owner. You never want to jeopardize your chances of having the home of your dreams.

There are plenty of mortgage loan services available today. Before stepping into the market, however, there are certain things you need to take care of.

O      Know what you need

When applying for a mortgage, you should have a good knowledge of necessary requirements beforehand. Lenders often ask for proof of income, proof of your assets which includes your bank statements, credit score, and your social security number. Knowing the details beforehand gives you time to collect documents so the process becomes much easier when you have all the documents well prepared.

O      The debt-to-income ratio

The debt-to-income ratio (or the DTI) has become one of the major qualification requirements for a potential borrower. While you are applying for a loan, mortgage loan officers in Georgia will look into your current amount of debt. This will be compared to your gross monthly income. 

To increase the approval chances of your loan, you need to maintain a low DTI ratio. Try to hold all other forms of financing for the time being to prevent any trouble. 

O      Missing payments

Missing car payments and credit card payments can create big hurdles for you while getting approval for a loan. Your credit score is used as a risk assessment tool by lenders. A lower score directly indicates higher risk for the lenders. 

You need to take measures to protect your credit score. Try to avoid using your credit cards for a bit, limit your shopping, and ensure all your bills are paid on time. Put effort toward keeping your balances down and it will, in turn, improve your chances of getting approved. 

O      Avoid big purchases

Buying that expensive new cell phone, spending big money on new furniture or buying a new car might not be such a good idea. High expenses and acquiring new debts might sabotage your chances of getting approved for the loan. 

Also, you will encounter a number of out-of-pocket costs while buying a house. Having a good amount of savings will improve your chances as a borrower and will enhance your chances of getting a mortgage.

O      Steady employment

Lenders are always keen to see a history of steady employment. Ensure that there are no hasty employment changes made to make a good case for yourself. If you are switching to a job in the same field with an equal or higher income level, there may not be many problems. 
If your career choices are leading you to a lower income job, you might get in some trouble. Try to postpone your career ambitions and keep things steady for the time being.

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