In the economic world that we live in today, it has become increasingly harder to secure a mortgage. Many lenders have tightened their restrictions when it comes to approving home loans and are requiring more and more from potential borrowers. Unless you qualify for a VA loan you are going to have to secure a mortgage from one of many well-known lenders. While the borrowing process has become more difficult, it is not impossible.
To increase your chances of becoming approved for a loan many experts suggest that you have a minimum of six months living expenses in your bank account. Lenders do not take into consideration how big your stock portfolio is they want to know how much cash you have on hand. To do this you will need to show proof of money you currently have in your checking account in addition to the down payment that many lenders require. While this may seem like an unnecessary requirement, it will greatly improve your credibility with lenders.
Before applying for a mortgage you should also ensure that your credit is in good standing. Many lenders are now requiring buyers to have a much higher credit score than was previously needed to secure a loan. If your credit has a few blemishes you need to clear those up as soon as possible in order to improve your credit score. Your credit score has never been as important as it is when you are trying to purchase a home.
Be wary of high loan offers, some lenders are still trying to push large loans onto unsuspecting borrowers. If your mortgage broker offers you a loan for more than you can realistically afford you should find another mortgage broker as soon as possible. Never accept a loan that you will have trouble paying back. While it may sound appealing during the buying phase, it can come back and bite you later. Buying a home should be something that is enjoyable, if you are in over your head from the beginning your home buying experience can turn into a nightmare.
Purchasing a home is something that everyone dreams of doing at some point in their lives. By following the proper procedures and choosing a lender that you are comfortable working with your home buying experience will remain positive. If you encounter a lender that doesn’t sit well with you, don’t feel pressured into staying with them. You can always choose to work with another lender at any point during the buying process. Once you have a letter of approval that you are comfortable with you are then free to start looking at homes and hopefully you will find the home of your dreams.