How To Get Approved For A Mortgage
- Check your credit score
- Bring a nice down payment
- Review any outstanding debts you have
- Try to get pre-approved for a mortgage before going out to look at homes
Getting approved for a mortgage
When you find the home you want, you will have to sit down with your real estate agent and whatever broker owns the property. This is where all of the mortgage approval happens, to begin the process, you need to bring a few essential documents with you.
Here are all of the things lenders look for when deciding whether you are approved for a mortgage.
Factors That Impact Your Odds Of Being Approved For A Mortgage
- Total monthly income
- Credit Report
- Summary of All Your Current Monthly Debt Payments
- Down Payment
- Sensible Idea of How Much You Can Afford
Once you have all these pieces of information in order, you will be able to begin the process of applying for a mortgage.
Closing the deal
The final decision as to whether you’re approved or not lies in the hands of the lender. Some lenders take all of the factors we mentioned above into consideration when making their final decision, while others only consider a few of those variables. If you’re unsure about how likely you are to get approved for a particular mortgage, go online and look for a pre-approval program so you can get a clear picture of how much house you can afford.
People Also Ask
Q: How can I get approved quickly?
A: The best way to get approved for a mortgage reasonably quickly is by having a concrete understanding of your financial situation before going out to look for homes. Here are some tips you can use to secure a home mortgage loan pretty fast: establish a clear budget before looking for homes, know your credit score, have cash on hand, pay off any of your outstanding debts, and try to gain pre-approval status.
Q: How hard is it to get approved for a mortgage?
A: Getting approved for a mortgage is not difficult; however, it can be a complicated process depending on all of the factors impacting your specific situation.
Q: What credit score do you need to get approved for a mortgage?
A: FHA loans require that you have a minimum credit score of 500-580 depending on your down payment amount. For other mortgage types, the minimum score is about 620.
We’ve covered all of the important facts and information that you need to know about securing a home mortgage. Ask yourself these two questions before starting the process, “How much house can I reasonably afford?” and “What is my credit score?” These will help you increase your odds of getting approved for a mortgage.
Here is a great article from Investopedia.
You may also want to read our Prequalify For A Mortgage page.