Getting Approval on Your Mortgage Loan

When it comes to purchasing a home, obtaining approval for a mortgage loan is the “big poppa” of to-do’s. Lenders like us at UFM carefully assess various factors to determine your creditworthiness and ability to repay the loan. We put together some helpful tips for securing approval on your mortgage loan to help you get started.

 

Mortgage Loan Pre-Approval Tips

  1. Build a Strong Credit Score:
    • Pay bills on time and avoid late payments.
    • Keep credit card balances low and aim to reduce overall debt.
  2. Save for a Down Payment:
    • Lenders often require a down payment, typically ranging from 3% to 20% of the home’s purchase price.
    • Start saving early to demonstrate financial responsibility and improve your loan eligibility.
  3. Manage Debt-to-Income Ratio (DTI):
    • DTI compares your monthly debt payments to your gross monthly income.
    • Aim for a lower DTI by paying off existing debts and avoiding new large financial obligations.
  4. Maintain Stable Employment:
    • Lenders prefer borrowers with a steady income history.
    • Avoid changing jobs during the mortgage loan application process, if possible.
  5. Get Pre-Approved:
    • Obtain pre-approval from a lender before house hunting.
    • Pre-approval demonstrates your seriousness as a buyer and strengthens your offer.
  6. Organize Financial Documents:
    • Gather necessary documents such as tax returns, W-2 forms, bank statements, and proof of assets.
    • Having these documents readily available speeds up the loan application process.
  7. Work with an Experienced Mortgage Professional:
    • Seek guidance from a trusted mortgage professional who can help navigate the loan application process.
    • They can provide valuable insights, recommend suitable loan programs, and assist with paperwork.
  8. Avoid New Credit Applications:
    • Applying for new credit, such as credit cards or loans, can temporarily lower your credit score.
    • It’s best to avoid new credit applications during the mortgage loan approval process.

 

Remember, lenders want to see that you can demonstrate financial responsibility, maintain a good credit score, and be well-prepared throughout the process. With careful planning and the right approach, you’ll be on your way to securing the mortgage loan you need to make your dream of homeownership a reality.

If you feel like you’re drowning in credit card debt, feel free to reach out to our team at United Faith Mortgage. At UFM, we say we have a Direct Lender Advantage.  Our small family team is an arm of a much bigger company that is a Direct Lender. Because of that, our company gets to use its own money and make its own decisions within its own walls. There’s no middle man. For you, this often means shorter turnarounds and a better rate… which can mean paying significantly less each month.

We’re a no-pressure kind of team, so we’d love to help tackle any cash-out refinance question – big or small – without the sales pitch.

Here when you need us.

– The UFM Family