How to Get Approval for a Home Mortgage Loan

If you are planning to apply for a home loan, check out the following helpful tips to get your application approved.

Know Your Credit Score

Credit activity and credit scores will greatly affect your mortgage approval. Lenders usually require minimum amount of credit score that should be maintained so that your conventional mortgage loan request will not be denied.

Also, having derogatory credit information might hinder mortgage approval. To avoid unwanted denial of your requested loan, you should lower your debts, pay bills on time, and fix errors on credit reports.

Save Your Cash

Mortgage lenders require down payments which depend on the kind of loan. If you have the means, pay a higher down payment. This will lower your balance and alleviates your private mortgage insurance.

Down payment is not the only fee you should be worrying about. Acquiring a mortgage also involves home inspections, title searches, closing costs, application fees, credit report fees and other fees. Save up cash for these payable fees.

Stay at Your Job

Changes on your employment and/or income status will have a major effect on the mortgage process. The information you provided in your application will be the basis of your home loan approval. Giving up a job to be self-employed or getting a lower paying job will make a wrench in the plans, leading to a reevaluation of your finances to check if you’re still qualified for the loan.

Pay Debt & Avoid New Debt

Qualifying for a loan doesn’t require that your credit card be zero balance. But, it’s better that you owe less to your creditors. Your debts determine whether you will get a mortgage or not. Also, it will determine how much you will acquire from the lender. When you have many credit card debts which makes your debt ratio high, the lender might refuse your loan request or provide a lower mortgage.

However, even though you get approval for a mortgage with debt, it is advised that new debt should be avoided while under the mortgage process. Before the mortgage closing, lenders recheck credit and when they found out that there are new debts they can stop the closing.

Have Pre-Approval for a Mortgage

Having your home loan pre-approved will help you determine what you can afford before bidding on properties and what interest rate should you be paying on the loan.

Determine What You Can Afford

Choose a home that will fit your budget. Though some lenders pre-approved applicants for more than what they can afford, be smart, live within your means and purchase a home that you can afford.

Three Proven Techniques For Car Loan Approval After Bankruptcy

Most consumers associate bankruptcy with reduced credit options. The reason for this is that many people know for a fact that it will be very difficult for them to get good financing deals once they have filed for bankruptcy. How come?

Well, most lenders today tend to shy away from extending credit accounts to consumers who possess bad credit reports, especially those with bankruptcy records. After all, they do not want to take on the huge risk involved in allowing these consumers to assume credit lines.

Still, you have to remember that bankruptcy should not be the end of your credit history. This is because there are a lot of great financing deals that you can take advantage of once you have successfully fixed your bad credit report. But how can you do this?

One way to regain your financial health is to apply for an auto loan. Below we have tackled three proven techniques that you can employ for you to instantly get approved for a car loan. This way, you can have a credit account that you can use to gradually repair your bad credit history.

Three Techniques for Car Loan Approval

1. Know the requirements and guidelines of lenders. Even with a bankruptcy record on your credit file, you can still inquire about the common requisites for different car loan programs. You just need to approach a prospective lender and ask about the guidelines of the auto loans they offer. Then tell him upfront that you have had discharged your debts through bankruptcy and you wish to use a car loan to repair your credit history. Your honesty will surely encourage the prospective lender to come up with a program that will suit your personal and financial situation. And he will surely be glad to assist you regain your credit reputation by approving your application for a car loan.

2. Know your credit standing. Once you have determined the requirements for a car loan, your next step will be to prepare all the necessary documents that you have to submit to your chosen car loan provider. For sure you will be asked to provide the most recent copy of your credit report to your lender. This is why you have to obtain a copy of your credit file from any of the three credit reporting agencies.

After receiving your credit file, scrutinize the entries on your report carefully. See to it that your credit report is free from any errors and inaccuracies that can inflict further damage to your credit standing. If you see one, then file a letter of dispute to the three credit reporting agencies right away. This way, they can immediately investigate your records and eliminate the mistake or incorrect entry that you have observed on your credit file. This will in turn ensure that you will eventually receive a more accurate credit report that you can present to your lender once you have filed your application for a car loan.

3. Consider refinancing. After your application for a car loan has been approved, always look for opportunities to refinance your credit account. In line with this, you have to make sure that you pay all your credit charges on time and in full each month. Eventually you may qualify for lower interest rates and fees which will allow you to repay your car loan in the soonest time possible. And for sure this will help you finally recover your financial health.

Follow these techniques and for sure you can get approved for a car loan that you can use to rebuild your credit history, even after you have filed for bankruptcy