How To Qualify For A Loan In This Market
Here is a guest post from Allen Rey.
Buying a house is an integral part of every human’s financial planning. This is why they need to work accordingly so as to get the required funds for the same. As per the real estate market update, mortgage rates are going at near ground level that makes buying a home quite an affordable purchase. So, people must take all the measures that will give them the mortgage pre-approved letters. This is because homebuyers armed with a pre-approved letter will have an upper hand in getting the most lucrative deal.
For that reason, homebuyers who need mortgage approval should learn the steps that will make them eligible for the loans.
Mortgage approval tips
In order to get approved for the mortgage loans homebuyers need to work on these tips:
a) Financial documents – Lenders evaluate the mortgage applicant’s monthly income, credit history and personal properties before granting them the approval. This is because they want ensure the mortgage affordability of the person who is seeking the mortgage
b) Mortgage shopping – Homebuyers seeking mortgage loans should shop around the local mortgage market. This will help them understand the market trend and make informative decisions. At least 2-3 mortgage quotes are more than enough to provide great insight into the current rates lenders are offering since almost all the rates are more or less the same.
c) No obligation – There is nothing so called obligation to take loans from the lenders from whom homebuyers might have got the approval. The pre-approval letter is a temporary agreement that says the lender is willing to make the deal at the said terms and
d) Lender reputation – Homebuyers should avoid down market and shady mortgage lenders. On the other hand, it safe and secure to deal with popular mortgage lenders since property sellers are very conscious about the source of home finance and the lender’s
e) Credit score – Making too many hard inquiries may have negative effect on one’s credit score. Getting a slew of credit cards just before applying for the mortgage loans will tank a homebuyer’s credit score. A good number of mortgage lenders analyze the credit score of homebuyers before granting them any loan.
Finally, homebuyers should keep this in mind that pre-approval letters come with an expiry date. These dates are different for different lenders. So, homebuyers should check the expiry dates of their mortgage pre-approval letters and ask the lenders to re-issue a fresh one in order to carry on with the application process.