How Can I Be Easily Approved By A Lender?

Buying a home is an exciting step in life. It’s also a big financial commitment. Whether you’re buying a new home or refinancing an existing mortgage, there are several factors to consider before making a decision. One of these factors is whether or not you’ll get approved for a loan. If you’ve been turned down in the past, it can be frustrating. However, it doesn’t mean you should give up. In this article, we’ll discuss how to get easily approved by a lender when buying a home.

1) Consider Partnering Up With A Co-Signer

A co-signer helps in boosting your stated income whenever your current one falls short. This is due to the fact that the income of the co-signer gets calculated along with your income into the affordability calculations - letting the bank feel more secure lending you money since they now have two people liable for the loan about to be released. This usually helps make your previously "fair"-rated credit score stronger, and in turn increases your chances of getting an approved mortgage. To make a strong case, choose a co-signer that has good credit history, stable income, and a good employment history.

2) Build Your Credit Score

There are many ways to do this, but one of the easiest is to apply for small loans from local businesses or to open a secured credit card with a small credit limit. Both these acts allow for you to build your credit history and earn a reputable source for lenders to look at - all in all making them more confident in giving you a sizeable loan for your new home.

Of course, one of the most important things to make sure your credit score is at its best form would be that you make sure that your credit reports have no error, you're always on top of your payments, and that your debt-to-income ratio is at 40% or below.

3) Find Out What Other Options Exist For Financing

If your credit score is already solid yet you're still having some problems, maybe it's about time you start to reconsider the lender you're applying to. Your two other options would probably be to reach out to the banks that offer FHA loans (in which the Federal Housing Administration takes part in lending to reduce the risk for banks in issuing mortgage loans) or to check out other lenders that would be a better fit for your needs and current situation (such as large banks that don't usually underwrite many mortgage loans, local banks, and community banks that may have a different credit requirement that would be a better fit).

In the end, the most valuable asset is a reliable realtor

If you've been repeatedly turned down for a mortgage, maybe it's a sign to seek the help of an expert. If anything, getting advice and assistance from a good realtor can help ensure that you loan the mortgage that you need for your new home.

Make sure to be in-the-know when selling a house. Be knowledgeable of the homebuying process with Julie Grandon's Complete Home Buying Guide.

To get in touch with an amazing realtor ASAP for an extra helping hand, feel free to contact Julie Grandon at (703) 606-5383 or julie.grandon@gmail.com.