When you apply for a mortgage, the lender will weigh many factors before making a decision. These factors determine what type of loan you qualify for and what the interest rate and terms will be.
Awareness of these factors and take steps to improve all of them can give you a clear advantage to start the approval process that you expected to result in closure of your new property. Their actions may determine the success or failure.
The basic factors apply for any approval of the loan, but are particularly important when it comes to getting approval for what is probably the biggest loan ever apply. The most important factor is credit.
What is your credit? Get copies of all credit reports consumer companies: 3 main reporting and verification of each of the errors. These are available on the website annual credit report.com for free.
Credit reports often include misinformation that hurts your credit score and needs to be corrected. You can dispute inaccurate information directly at the source and significantly improve your credit score before applying for a loan to pay off all credit balances are displayed on your credit report if you can, but do not close the accounts.
The large down payment will greatly improve your chances of approval. If you have had credit problems, the negative impact your credit score is a less influential factor.
If your credit is excellent, even a larger down payment will help ensure the best mortgage terms.
The most important rule is never outright lie to your lender. Do not tell them you've been at work 5 years if you've been there only 6 months. These things will be monitored and that only causes a delay. Your mortgage originator is there to help, so be honest and get the best possible loan approval.
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