What are the best ways to get your mortgage loan approved?

You are almost there; you know how much you can afford, and you have found the right home. Now you’re just waiting for your mortgage application to be approved. Surely you don’t want your dream of homeownership to come crashing down because lenders deny your application. However, that nightmare can become a reality if you do any of these:

Buying a home is perhaps the largest purchase one makes in life, and certainly lending such a big amount of money is a risky business; it’s only natural that lenders don’t hand money over to just anyone. Buying a home is already stressful; the stress is double if you are ill-prepared. Surely you don’t want to put yourself through this? Educate yourself and take control of your situation. What can you do to get your mortgage loan approved?

For many, it’s not getting a mortgage approval that’s the hard part about buying a home – it’s keeping the mortgage approval. Mortgage approval takes time; it takes about 30-45 days. A lot could happen in that time span – lose a job, become ill, natural calamity – any events that could change your life are bound to change your chances of getting loan approval too.  Though some life events are completely beyond our control, a lot of them are within our control. It’s only a matter of keeping good behavior.

What Buyers Should Do To Get Approved For A Mortgage

Let’s go back to our infographic and reverse the items listed in it.

1. Do not quit and get a new job at a new company.
2. Do not forget to pay your bills on all your existing accounts.
3. Do not transfer large sums of money between accounts; keep your funds stable in the same accounts;
4. Do not apply for new credit cards, and keep all existing credit cards open.
5. Do not max out your existing credit cards.
6. Do not make any large purchases.
7. Do not buy a new car or do a trade-in.
8. Do not make undocumented deposits into your bank account.
9. Do not make any changes without first consulting your lender.

These are just the most common land mines in the mortgage process that you should stay clear of; of course, there are more reasons that could undermine your success in getting a loan. Consult with your lender to help identify them.

Also, keep in mind the cleaner your financial history is, the faster your approval process is likely to go. Of course, the speed at which they could process your application is reliant on how much documentation you provide to them from the beginning.  Submitting every single iota of possible documentation upfront reduces the chances of your application being reviewed by more people.

If, in the worst-case scenario, you’ve been turned down for a mortgage, don’t get discouraged. Make sure to ask the lender about things you could do in your specific situation to make yourself a more qualified loan candidate. Many people have risen above credit problems, foreclosures, and bankruptcy. With time, patience, and hard work, you should be able to turn the situation around and realize your dream of home ownership.