Buying a new home is stressful enough as it is, so the last thing you want is to worry about having to wait around to get approved for your home mortgage. Thankfully, home loan applications don’t have to be a lengthy or daunting process.
If you want to get into your new home quicker, follow these tips to get your loan approved fast.
Check your credit score
When you apply for a loan, you want to be sure that lenders view you as an attractive prospect. So, you need to be sure that your credit score is high enough. Checking your credit score is easy to do, and many places let you get a report for free.
By checking your credit score early on, you can avoid any problems further down the line. Even if you think your score is high enough to qualify, you may find that your score has been mixed up with someone else’s or that you have been the victim of identity theft.
Addressing any issues before applying for a loan is essential to avoid lenders denying your request. To keep up a good credit score, be sure to pay your bills on time and lower your debts. If you can, avoid taking on new debt for the time being.
Lenders will look at your debt-to-income ratio when considering whether or not to approve the mortgage, so keep the debt ratio low to help increase your chances of getting the loan and getting a better mortgage rate.
If you have a good reason for having missed payments in the past, be prepared to be open and honest with the lender, and detail how you would avoid it happening again in future.
Get a home loan pre-approval
Before you start bidding on properties, be sure to get pre-approved for a mortgage. A home loan pre-approval will give you an indication of whether or not a lender is likely to approve your home loan, and it can also give you an idea of how much you could borrow so that you don’t waste your time on properties that are out of your price range.
Save up for a deposit
Before you apply for a home mortgage loan, save up as much as you can towards your deposit. Not only will this help reduce the amount you need to borrow, but it will also show lenders that you can be disciplined with your cash.
Don’t quit your job
If you’re trying to buy a house, then try to avoid making changes to your employment or income status. The last thing you want to do is quit your job for a lower-paying role or to become self-employed when you’re so close to getting that dream home.
Remember, whether or not a lender approves your home loan will depend on the information you provide during the application process. If this information changes, then the lender has to reevaluate your situation to see if you still qualify for the loan. Not only can it cause a delay in the mortgage process, but it could stop it altogether.
Once you’ve closed the deal on your new home, then you can start to think about changing jobs and taking on new debt.