After the recession, getting mortgage approval is no longer that easy. However, it is still possible for young and new buyers to get a mortgage that suite their ability to pay and budget.For almost nine years, the U.S. economy is rebuilding from the impact of the recession. Today, many Americans are looking to buy homes after years of renting. The real estate market is coming back to tighten up the competition in many parts of the country. Interested buyers are becoming aggressive in giving offers that deepen the pockets of investors.
Before 2008, anyone can quickly get the pulse and approval of the mortgage. Despite the poor credit score, lenders are taking the risks of giving housing loans.
House prices are not the same as before. Today, houses are way up expensive. The home interior is a factor that influences the price. Houses with beautiful design flooring from Dallas Flooring Warehouse are one of the best homes that lenders can fund. But of course, you need to qualify to get the written approval of the mortgage firms.
Despite the stringent practices of the banks, it doesn’t mean that first-time borrowers and new couples will have the difficulty of getting new homes to start their new lives. There are means to prove to the bank that you, as a newbie, is financially ready for a mortgage.
Before going to the bank and mark the ink in the application forms, and before strolling around to series of open house events, check the following basic information and assess your status:
- How much is your monthly income?
- Assess how much is your current standing debt
- What is your credit score in the past few years?
- Do you have credit issues?
- How much cash can you pay as a down payment?
- How much house can you afford?
Lists of things to do to get quick mortgage approval
- Compute your monthly income and the amount of your standing obligations that need to be paid every month.
Most of the borrowers fail to understand the dynamics of money coming inside their pocket and bank accounts. First, know what are your sources of income that you can get to pay your monthly obligations? Second, determine how much are you paying and how long will you be paying the commitments of your obligations.
Be ready to provide at least two weeks of payslips to your lender. If you are self-employed, expect the process of underwriting as part of the process. Also, prepare to submit copies of your two tax returns.
- Credit health check-up
Before applying for a mortgage, you need to obtain both your credit score and your credit history report. The credit score must be at least 680 to 700 and above. If in case the credit score will not satisfy the minimum requirement, the lender will often require you to have a co-signer. Moreover, if you get a lower credit score, then the mortgage rate will also be higher.
- Determine your budget spending plan
You need to determine how much money you can afford to pay and your comfortable amount to spend on the monthly payments. As a best practice, your total housing payment should not be more than 35 percent of your total gross income.
- Ask yourself, how much do you have for the down payment
You need to tease-out your financial and spending plan. You need to set a ceiling amount to spend as a down payment depending on your capacity to earn. Typically, mortgage lender will still require at least 10 percent down payment
- Check if you can pre-qualify
Check-in Google and find websites that offer credit calculators. Before visiting the bank, use the online calculators to check your viability.