Your ability to obtain a mortgage loan as well as the interest rate offered to you by prospective lenders will depend on your credit score, employment history and general lendability. Keep reading to learn 8 ways you can better your chances of qualifying for a home mortgage loan.
1. Make your payments on time. If your credit score is weak, try going one full year making all your payments on time, every time. You ll see your credit score go up along with your chances of obtaining a mortgage with a favorable rate.
Bear in mind that when you make late payments on your bills even by just a few days this negatively impacts your score. One or two such payment delays will make little difference. But habitual patterns make their mark over time.
2. Develop a good relationship with your landlord. By always paying your rent on time and being a good tenant, you can ask your landlord for a letter of reference. Including letters like these in your mortgage application can go a long way in improving your lendability.
3. Stay on top of your student loans. Typically, you are considered ineligible for a mortgage if you ve allowed your government student loans to go into default. However, by renegotiating your loan and payment schedule, you can often opt to have these restrictions lifted.
Even if the amount you can afford each month is low, make loan repayments a discipline you follow.
4. If you ve filed for bankruptcy or have a prior foreclosure on your record, you should wait at least 3 years until applying for a new mortgage. And if you haven t gone this route in the past but are on the brink, ask your lender s advice before going through with it.
5. All your payments, judgment ordered payments (like child support) and outstanding collections should all be paid in full.
6. If you re self employed or have a commission based income, you ll need to show evidence of a steady income over the last two years. By providing your lender with bank statements and tax returns, they can accurately assess your average monthly income. Gather that paperwork in advance so it is ready and organized before meeting with your lender.
7. Any external income from sources like a second job or child support should be consistent. In order for this kind of secondary income to qualify, you should be ready to prove at least two years of consistent history. Typically, if you ve just been awarded child support, it won t count toward your qualifying income.
8. If you re being sued or are involved in any legal matters like a divorce suit, you will most likely have to wait until the matter is settled before you can apply for a major loan. Lenders want to see stability and an understanding of your financial future that isn t clouded by potentially unfavorable legal judgments.
Overall, lenders want to see a candidate who has a stable employment history, a good credit standing and a clear ability to make their payments on time. By presenting a good case backed up with proof of income and letters of reference, you ll improve your lendability and more likely qualify for your next home mortgage.
The Free Ride In Public Schools 27 Nov 2008 at 11:28am
Why should public-school students bother doing homework or studying hard if they advance to the next grade no matter how bad they do in class? That would be dumb, and these kids are not dumb. Punishing the Victim -- Why Public Schools Pressure Parents To Give Their Kid... 27 Nov 2008 at 11:28am
It is normal for bright, energetic kids to be bored in public school. To solve the problem of "unruly" children, public schools now pressure parents to give their kids potentially dangerous mind-altering drugs. The Graceful Art of Defrazzling - For Mothers 27 Nov 2008 at 11:28am
An introduction to a "defrazzled" method of surviving life as a mother
If you are interested in learning about and discussing social services and social services agency management, please visit SocialServicesAgencyManagement.com where you will also learn about the new ecological model of excellence.
![[Valid RSS feed]](http://www.LeadershipVillage.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
