How to Get Approved for a Mortgage

Written by Priority Lending Admin on July 28, 2020. Posted in Home Loan, Mortgage.

Getting approved for a mortgage isn’t a complicated process. You need to make sure that you have all the proper documentation to increase your chances.

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

If you’re moving from one existing home to another or are embarking on your very first home ownership adventure. The first thing you need to do before thinking about closing the deal and moving in getting approved. Mortgage approval requirements vary based on a lot of factors such as your pre-existing credit score, salary, marital status, and more.

You can get pre-approved for a mortgage by lenders before even stepping foot into a property. This is commonly known as pre-approval. By doing this, you will be able to gain a clear vision of what houses you can afford. And importantly, which ones you should avoid altogether.

Pre-approval isn’t the only way to get approved. Several programs are designed to help people secure a mortgage on their dream home regardless of their current financial status. To better understand what you can expect when trying to get a mortgage, we’re going to give you a detailed breakdown below.

How To Get Approved For A Mortgage

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.

Conclusion

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.