Boost Your Home Loan Approval Chances With These Smart Strategies

It can be devastating to finally find the home you want only to lose it to another buyer. The good news is, by laying your homebuying groundwork, you can minimize the chances of this happening to you.

One of the best ways to boost your chances of get the home you want is to get pre-approved for a home loan.

What Does “Pre-Approved” for a Mortgage Mean?

If you don’t have the cash to pay for a home, you’ll need a mortgage loan. You can talk to a loan officer early in the process instead of waiting until you find a home you want. Getting pre-approved means finding out if you qualify for a mortgage loan — as well as how much you quality for.

Steps for Getting Pre-Approved

There are certain requirements for getting pre-approved for a home loan.

  1. Find an experienced mortgage loan company. Working with a reputable loan officer is crucial to your homebuying success. They can walk you through the process, explain what to do if you need to work on getting pre-approved, and assist you in choosing a mortgage loan program.
  2. Share your financial information. The lender wants to feel confident you can pay any loan you receive on time and in full. Be prepared to share your financial picture with the loan officer. This includes a listing of your savings, retirement accounts, and other assets. You’ll also need to share your debt load, allow them to pull your credit report, and verify your employment and income.
  3. Make a choice. There are many loan options, depending on your financial picture. You’ll need to consider the length of your mortgage loan (15, 20, 30 years), the type of interest rate (fixed or adjustable), and the loan program you’ll use (such as FHA, VA, USDA or traditional).

How To Boost Your Chances of Getting Pre-Approved

You can increase your pre-approval chances by:

  • Checking your credit report. Go online, pull your credit reports from the three credit bureaus –Equifax, Experian and Transunion — and review every line. If there are any errors, dispute them with the bureaus immediately. You can get your report once each year for free from all three credit bureaus at annualcreditreport.com.
  • Paying down your revolving debt. If you have credit card debt, it can decrease your credit score and throws off your debt-to-income ratio (a big factor in determining your eligibility for a mortgage). Cut your expenses and pay down as much on your debt as you can to increase your chances of getting pre-approved.
  • Making more money. Ask for overtime, get a part-time job, or start a side hustle to increase your income.
  • Staying with your current employer. Don’t change jobs. Lenders like to see a stable work history.
  • Saving money for a down payment. Save any extra cash for your down payment. Being able to put more down can open up additional loan options for you.

Call MIG To Start Your Mortgage Pre-Approval Process Today!

Making sure you can get pre-approved for a mortgage loan is a smart move on your homebuying journey. Call MIG and let one of our loan officers explain how we can help you get pre-approved to become a homeowner.