Few experiences are more rewarding than moving into your first home. For many people, becoming a homeowner represents a tremendous accomplishment and serves as an important milestone on the path to adulthood. However, unless you can afford to pay for your first home in one lump sum, you’ll need to be approved for a mortgage before graduating from renter to homeowner. While getting a home loan is liable to seem daunting to first-time buyers, it doesn’t have to be an uphill battle. Prospective homebuyers on the hunt for mortgage approval will be well-served by the following pointers.
Be Familiar with Your Credit Score
A surprising number of homebuyers never bother to check their credit scores before applying for loans. To a point, this is understandable. After all, if you’ve never had any significant credit issues in the past, it’s only natural to assume that your credit score is top tier. However, checking your score can provide insight into problems you didn’t even know existed. For example, if identity theft has been occurring right under your nose, you may be in for quite a few surprises. With this in mind, make a point of thoroughly reviewing your credit score before applying for your first home loan. Even if your score is every bit as spotless as you expect, this will provide you with valuable peace of mind.
Pay Down Existing Debt
You’d be hard-pressed to find a lender who wants to take a chance on someone with significant outstanding debt. For instance, anyone looking to impress mortgage lenders in PA would be wise to enter negotiations debt-free. To ensure that debt doesn’t act as a hindrance to your chances of homeownership, take care to pay down your existing debt before applying for a loan. While this may mean waiting longer than anticipated to apply, it will ultimately improve your chances of approval. For good measure, put off any large purchases until after you’ve been approved. If you intend to buy a new car, television or any other expensive item, it’s recommended that you put this on the backburner.
Many lenders won’t take a chance on applicants who aren’t gainfully employed. As such, if you are currently without a job, you should avoid applying for a home loan until after you’ve found one. Alternatively, if you’re currently employed but intend to quit your job, this is a horrible time to go through with it. Quitting or getting fired during the application process has the power to tank your chances of approval, so provided things at work are still bearable, it’s a good idea to stay put for the time being.
Purchasing your first home can be equal parts exhilarating and stressful. Fortunately, there are a number of easy ways to cut back on the latter. Although getting approved for a mortgage may seem like an arduous undertaking, it isn’t nearly as difficult as many first-time buyers think. With the help of the previously discussed tips, mortgage approval is well within the grasp of any serious-minded homebuyer.