Steps to Qualify You for a Mortgage
Congratulations! You’ve decided that now is the time to purchase a new home. And unless you’re planning on paying cash money for your new home it’s important to secure a home loan before you start looking at new homes in Temple TX. But how do you go about qualifying for a mortgage? Below you will find five tips for securing that home loan for your dream home.
- Fix your financial profile – One of the most important keys in qualifying for a mortgage is your credit score. The higher the number the better you look to financial institutions. If your number is low it’s important to improve it to a higher number. Pay off your debts, avoid buying high priced items like a car, don’t open up new lines of credit, and avoid late payments. You’ll also want to fix any discrepancies that are on your credit report. This could be a factor in why your score is low.
- Respond quickly to lenders– You should be able to respond to a lenders inquiry within a timely matter. Have your bank records, paystubs, tax returns, and other documents readily available for a lender upon request. Not having these documents or even them being incomplete will not have a positive impact in trying to borrow money from a lender.
- Buy within your means – We all have a picture of what our dream house is. But sometimes our budgets don’t reflect that. Be honest with yourself in what you can afford. You definitely don’t want to be house poor.
- Save more money for your down payment – The more money you have saved up equals the less amount of money you’ll need for a home loan. Saving at least 20 percent will help to lower the loan-to-value ratio, which is a positive.
- Be a stable applicant – Lenders want to know they are lending money to a stable individual. Factors like how much money you have in the bank and how long you’ve been at your job will all come into play. You definitely want to demonstrate stability and profile of financial strength.
Securing your home loan isn’t an easy process. There are many financial guidelines that have to be met in order for a lender to approve you for a mortgage. However, having your financial house in order, saving money, and knowing how to play the game will help you qualify for a mortgage that works for you.
Kiella Homebuilders uses six preferred lenders. Our preferred lenders are familiar with our communities, our company, policies and procedures, requirements, and sales team. In turn, our customers will receive accurate and timely answers to the questions you’ve asked. his allows for quick and accurate answers to your questions. A preferred lender will keep you up-to-date and provide a faster, less complicated loan process. To learn more about our preferred lenders and our available inventory of new homes in Temple TX please call us today at 254-778-0092.