First Choice Loan Services, Inc. wants to help mortgage applicants understand what is important to lenders and why. By using these tips, you can better manage some key aspects of your finances and potentially increase the likelihood of having your loan approved.
Not every applicant is approved for a home loan the first time he/she applies. For a variety of reasons, even after a lot of hard work, sometimes a loan just can’t be approved. It may have to do with the applicant’s credit or savings history, employment stability, debt structure, or the value of the home. The good news is that a denial is merely a detour, not a roadblock. Purchasing a home takes planning, discipline, and hard work! Follow these tips and, with our assistance, homeownership may be within reach.
Establish a consistent record of paying bills on time.
Before extending a sizeable loan such as a mortgage, most lenders will want to review how you have handled your credit in the past. This includes all credit accounts, including utilities, revolving debt (credit cards, etc.), and installment debt (car loans, student loans, etc.). It is critical for you to bring all overdue bills up to date immediately and begin paying them on time in a consistent manner.
Establish a consistent record of steady employment.
Lenders are more likely to look favorably on an applicant who has been in the same (or similar) line of work for generally 2 or more years. If you have been working steadily for less than 2 years, expect the lender to ask why. There are many acceptable reasons, including:
- You recently finished school or vocational training or left the military
- Your work is typically seasonal, and gaps in employment are customary to the industry
- You may have been laid off from your job
- Frequent employment changes are normal in your line of work (sales, contract work, etc.), but you have been steadily employed and maintained a consistent level of income over the past 2 years
You may want to pay off some debt to lower your debt-to-income ratio.
This step will make it easier to qualify for a mortgage loan if your debt ratio is high. Chances are good that, if you’re already paying rent, it will be a smooth transition to making a mortgage payment. Along with the mortgage payment, you’re also responsible for real estate taxes and insurance and, if required, mortgage insurance and homeowners dues. Work with us to determine the monthly payment you can afford based on your income and the standard debt-to-income ratio guidelines.
Establish a consistent savings pattern.
Saving money for a down payment and still having enough reserves left over to cover 2 months of expenses in the event of an emergency is typically the most challenging part of buying a home. While sometimes it is difficult, this is a necessary step to ensure you are financially ready to take the plunge into homeownership. Our goal is to help you meet your short-term and long-term financial objectives. We’ll help you evaluate exactly when the right time is for you to buy, in order to help you build a secure financial future.
A little about Susan: Susan graduated from Philadelphia University with a B.S. degree in Business Administration. She is a mortgage loan professional with over 12 years of experience. Building her business on referrals from past customers, Susan understands how to identify a mortgage program perfect for each borrower’s unique needs. She has expertise in sales and the entire mortgage process and is committed to providing each customer with the highest level of service and professionalism. Susan’s commitment to excellence and high standards for customer satisfaction make the mortgage process pleasant and easy for everyone involved.
And there you have it! Contact First Choice Loan Services, Inc., by calling 215-252-6253. and read more about them in the Bucks County Women’s JournalBucks County Women’s Journal firstname.lastname@example.org