Before getting a home loan, lenders have to dig all documents that can prove your financial suitability. While there are no guarantees that you’ll get approved for a loan, there are certain things you can do that will make you more attractive in the eyes of lenders.
Buying a house is already stressful and if you are not prepared there will be heartache and disappointment when your mortgage loan application gets denied. Don’t put yourself through this. Learn how to think like a lender and educate yourself on the best ways to get your mortgage loan approved:
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- Improve your credit score – Most lenders require a credit score of over 700. If you have a bad credit, there are things you can do to improve your credit score like paying off your debt, keeping up with the payment and never be late, avoid new credit card purchases, avoiding new credit card application or getting professional help.
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- Think twice before going self-employed– It’s good to be your own boss however there are some disadvantages when it comes to applying for a home loan. Lenders require at least two years of tax returns to judge your income. Many self-employed individuals report expenses on their taxes in order to reduce their tax liability. For tax purposes, it may be beneficial, but the net income is the number used for income qualification. It will be hard for you to qualify for a loan if your net income is low.
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- Save money for your down payment – Nowadays, lenders are asking buyers to put a substantial down payment in relation to the amount of the loan. It doesn’t need to be 20% of the home’s value, there are loans that only need 3.5% to 5% if you qualify.
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- Have a good employment history – A borrower with at least two-year employment history in the same field of work doesn’t look risky to lenders compared to a borrower who has switched to three different jobs in the same year.
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- Your debt to income ratio is 40% or less – If your monthly debt payments make up 40% or less of your gross monthly income, lenders can write you a mortgage. Higher than that, it is less likely that you can qualify for a loan.
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Read more: How Much House Can I Afford in Greenville, South Carolina?
Buying a Home in Greenville, South Carolina
Whether you are buying a Greenville, South Carolina real estate for investment, retirement home, or your dream home, it is wise to buy a home that you can really afford. Online resources that calculate how much house you can afford like this free spreadsheet can give you a rough estimate but it is still better to consult with your bank or financial adviser. Your bank officer will help you determine how much house you can afford, how much you’ll be able to finance through a loan, and what your monthly payments will be. That will give you a definite idea of your price range and you can target your home search based on your qualification.
Greenville, SC offers a wide range of housing options with price ranges that appeal to families and individuals of all income levels. Below you can search for homes in Greenville, SC. You can narrow down your search if you use the filter option so you can see property listings that fit your price range.
Need Help with Financing?
Free Mortgage Guide
If you are buying a home or anyone you know who is thinking of buying a home, use this Home Loan Toolkit to help you understand and help you get the best mortgage specific for your situation. This guide will also help you understand the mortgage process and overview of the total costs of homeownership.
