Tips to Improve Your Chances of Getting a Mortgage

At some point, you’ll want to buy a house you can call your own. Once you decide to purchase property, you’ll be faced with applying for a mortgage loan. If you want to find out how you can get pre-approved for a mortgage loan with monthly payment and terms that you agree with, you’ll have to start looking at your finances as early as now. There are different ways to improve your chances at getting pre-approved by a lender; here are some useful tips.

Remortgage before you change your job. In many cases, a person’s duration of employment is very crucial and can determine whether he is eligible to get a mortgage or not. If you’ve been employed by the same company for 12 months or 12 years will factor in your loan approval.

Repay other debts. It is very important that you make it a habit to repay all of your credit cards, store cards and overdrafts, not only to save you money, but also to increase your chances of getting a mortgage. Most of the time, lenders take into account the outstanding debt that their clients have, and will assess whether you can get a mortgage.

Don't open any new cards. This one is an old advice, but became even more important now because of the high expectations that mortgage lenders have. Getting a credit card before or during the mortgage application process can affect your credit score.

Tips for First-time Homebuyers

Many first-time homebuyers are usually apprehensive about choosing a house and closing the deal. It comes as no surprise, however, as this kind of event requires a lot of discernment, planning, and of course, money. So before buying a house, understand what your long-term goals are and consider factors such as the best type of home for you and your family, as well as what features you’d want your house to have.

You should know that each type of home – be it a condo, a detached single family home or a four-unit building – has its advantages and disadvantages depending on your goals as a homeowner. If you're planning to save on purchase price, you may want to choose a fixer-upper. If you're after the amenities, you may want a home that includes complete bathroom and kitchen fixtures.

If you're concerned with mortgage, you have to know at least how much you'll be paying monthly including the interest rate once you take out a loan. Mortgage companies usually offer competitive rates to make your home purchasing project go smoothly.

Lastly, know how much you can afford. You shouldn't simply direct your focus on monthly payments; you have to see the entire picture or consider the entire amount you'll be dealing with. Ask yourself if you are capable of funding this home in the long run because you don't want to purchase something that will end up in the foreclosure bin.