A Mortgage allows a bank to lend you money at interest in exchange for taking a property. Everyone wants to have a place of their own, and it is beautiful to have a place of your own. It reduces the worries and the expenses of paying rent and getting a mortgage is a very important aspect of owning a home for your future. People who do care about getting a house or a mortgage already have back up plans, it’s either they have been provided an amazing house or they inherited one from their family.
This post is not for you if you already have a home and are uninterested in owning another but I’d you want to improve your standards then you need a mortgage, there are few steps to take to be able to achieve this. Note your credit level must be reasonable, it is advisable to have more cash coming in instead of being in debts.
Once credit is less than what is required your request may not be granted so in order not to be in such a position, there are options for you to explore so as to request for a loan.
1. AVOID BEING IN DEBT
No one wants to give his or her money to a debtor or incest with someone who has so much debt to clear, because they will be at risk. Lenders will look at your DTI, i.e., debt-to-income ratio and if you are in greater debt than income, your lenders will have great distrust about paying them and this could lead to the denial of your application.
It is highly advisable to clear your debts before putting yourself in a new one and being a debtor is not good for business or anything, no one wants to be associated with you or strike a deal with you.
Living in debt is a deal breaker. Once you clear your debt please do not get involved in another give yourself time and concentrate on the mortgage. We know that times are hard and some issues just come that require us to make extra efforts but remember you have a mortgage. Avoid getting irrelevant things that are not beneficial in any way.
2. UPDATE YOUR CREDIT RECORD
It is advisable that you check your credit record year to confirm that it’s been updated, to know how much you have and to ensure that there are no errors which may affect you during a mortgage. Sometimes your credit report may be inaccurate and may cause you to lose the chance of securing a home.
Most people find out that there are some payments missing in their credit and some outstanding payment that has already been cleared to avoid these challenges. Please update your credit. Always contact a credit bureau to rectify such issues and on time.
3. INCREASE YOUR CREDIT LIMIT
Accounts with low credit limits won’t help you for your mortgage application, it is best you request for an upgrade of account and credit limit. First of all go to the back and request that your credit limit be increased. Once you have increased your limit you will be able to reduce your credit utilization ratio as well. This simply entails how much of your credit you use monthly.
Over 30% of your credit score is made of your credit utilization ratio. To clarify, if your monthly limit is $2000 and your expenses amount to $1000, that makes 100% of your credit and if you have a $2500 monthly limit with the same expenses, you utilize only 20% of your credit and this is good in the eyes of your lender.
FINAL NOTE FOR A MORTGAGE
You have the task of making sure that you impress your lenders by all means to get what you want. Making sure you update your account and also to improve your financial status. The thoughts of having your dream home should be a big motivation to you. Secure your future by working really hard and also shutting every loophole that could prevent your lender from coming through. This is very important because at some point we find it difficult to cover our bills so getting a mortgage is very important to have our best lives.
