Steps in Being Qualified for a Mortgage Loan

24 Apr

Wondering how to qualify for a mortgage loan? There are steps that you need to follow to make sure that you will get the loan that you are expecting especially if it is just your only way to purchase your dream house and lot.

Step 1

Know your capability of paying debt.  It is very important that you know to yourself that you can repay the amount of loan that you will get. You need to make sure that the lender will be satisfied on the credit score and credit history that you have had so that they will qualify you.

Step 2

Ensure that you are employed or an owner of a business. There are lenders that give chances to the borrowers who can provide their employment record that proves that they receive an income two to three times higher than the mortgage payment that they will have. Or if the borrower is self-employed they need to provide a proof like tax returns and bank statements of the business they have for at least a couple of years so that they can also be qualified on the loan that they are applying.

Step 3

Save money. Next thing you need to do is to make sure that you have enough savings that you will use for your down payment. Mostly, lenders require for a proof that the borrower have the ability to pay their down payment and it is better if you have the savings to show to them.

Step 4

Get your credit score records. It is necessary that you have the idea about the credit score that you have had from the past until the present day that way you can easily improve the needed things and make sure that you will obtain your loan. Be sure that you will pay for the unpaid debts of the past so that lenders will give you a more decent deal with good interest rate.

Step 5

Get a cosigner. To make sure that you will be qualified for a mortgage loan better to get a person that has a good credit score and history and cosign a loan for you. This strategy gives you a greater chance of getting the loan you are expecting in which you will pay for it but the name on the loan is not yours. Either you pay or not on the loan still the person responsible for it is the cosigner that is why you need to make sure that your cosigner has a big trust on you to agree and do this thing for you.

Remember that you need to provide documents and information that are all true and reliable because lending companies have all the means to verify it before they will either give you the loan or reject your



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