Getting a Mortgage: Don’t Sabotage Your Application

mortgage application being approvedIf you’re getting a mortgage to finance a home purchase, it’s important to be aware of the factors that can affect your application. Apart from prioritizing borrowers who can show their ability to repay, lenders also prefer credit-worthy buyers with good savings and strong employment history.

If you’re serious about getting a home loan, VIP Mortgage and other mortgage lenders in Phoenix share some things that can sabotage your application:

Changing jobs

A good employment history displays your ability to repay the mortgage. Even if you have work, moving from one job to another one indicates instability. Lenders don’t want to see this, as they prefer those that have been with the same employer for at least two years or more. If you suddenly become unemployed or take on a new job, your application might be denied.

Taking on new debt

This includes financing a major purchase like a vehicle or large furniture. It’s also not advisable to use your credit cards excessively, as it can only add to your debt-to-income (DTI) ratio as well as reduce the amount of loan you can qualify for.

Lying or fudging numbers

This can include lying about your employment history, exaggerating your income, or falsifying documents. Never do this, as banks and lenders will check and verify all information and documents you submit. Trying to mislead your lender could only get you in trouble and result in denied application.

Not saving enough

Lenders favor borrowers who have good savings and can pay a hefty down payment. Saving also proves that you can take on financial responsibilities. While there may be mortgage programs that allow little to no down payment, some of them have strict qualifications. You may also have to pay private mortgage insurance (PMI) when making a down payment less than 20% of the home’s purchase price.

These are a few of the things that affect your application negatively. Before applying for a mortgage, do anything you can to be an attractive borrower. You should also get in touch with a reliable lender to know more about the requirements and you loan options that suit you.

Posted on by Tsfp6 in Money Times

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