What You’ll Need For a Mortgage Loan Approval

If you are looking to buy a house you’ll need to get your credit in order.  The number one reason why…because you’ll want to qualify for the lowest interest rate possible.

The difference in your mortgage payment can be hundred’s or even thousand’s depending upon the size of house you want to purchase.

Here are the items you’ll need to make sure you have in order to qualify for a mortgage and get the best interest rate possible.

  1. Get a copy of your credit reports to see what is on your credit reports.  Also make sure you see your credit scores.  You’ll need to get all 3 bureau’s Transunion, Equifa and Experian.  Click here to get your copies including your credit scores CLICK HERE!
  2. Make sure everything you see on your reports belongs to you and that it is showing correctly on your report.  What for types of accounts, balances, etc.
  3. Next you’ll need to make sure you don’t have any late payments showing your reports.  If you do and you’ve been making payments at least 3 month after the late-payment call your creditor and ask them to remove the late-payment as a courtesy.  99% of the time they will do it.
  4. Lower your debt to credit utilization ratio.  Any unsecured cards, department store card or gas cards you’ll need to pay down the balances to 30% on each card.  By doing this your credit score will increase.
  5. Keep open trade lines at least 3.  This will show a credit history and most mortgage lenders require at least 3 trade lines.
  6. If you have old credit card accounts don’t pay them off even if you don’t use them because your credit score will go down due to having a lower credit availability amount.
  7. When you allow a lender to check your credit make sure you decide with in 45 days because if you don’t and have to have your credit ran again the scores will drop and other lenders will wonder why you didn’t get a loan the month before.  It opens the doors to question your credit-worthiness.

If you are looking to repair your credit and increase your credit scores so you can get qualified for a mortgage CLICK HERE!