If you plan on getting a mortgage loan then here are some things that you need to do in order for you to get approved.
1. Know Your Credit Score – It literally takes a few minutes to pull your credit report and order your credit score. But surprisingly, some future home buyers never review their scores and credit history before submitting a home loan application, assuming that their scores are high enough to qualify. And many never consider the possibility of identity theft. However, a low credit score and credit fraud can stop a mortgage application dead in its tracks.
Credit scores and credit activity have a major impact on mortgage approvals. According to the Home Loan Learning Center, a large percentage of lenders require a minimum credit score of 680 (620 for FHA mortgage loans) – and if your score falls below 680, lenders can deny your request for a conventional mortgage loan.
In addition to higher credit score requirements, several missed payments, frequent lateness, and other derogatory credit information can stop mortgage approvals. Pay your bills on time, lower your debts, and stay on top of your credit report. Cleaning up your credit history beforehand and fixing errors on your credit report are key to keeping up a good credit score. Source: Money Crashers
- Employment, salary and bonuses, and any other source of income for the past two years (bring your most recent pay stub, previous year’s W-2 forms and tax returns if possible)
- The most recent account statement showing the amount of any dividend and interest income you received during the past two years
- Official documentation to support the amount of any other regular income you may receive (alimony, child support, etc.) Source: Home Loan Learning Center
3. Get a co-signor – See if a family member or very close friend with a higher income and better credit than yours will cosign a loan for you. That means that the loan will be yours and you’ll be responsible for paying it, but if you don’t, the cosignor will have to pay it. Obviously the cosignor will have to have a great deal of trust in you for this option to work. Source: Michael Bluejay
Ian Klepsch – Duncan BC Realtor
2610 Beverly St Duncan, BC V9L 5C7