6 Tips to Get Approved for a Home Mortgage Loan - CRED
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6 tips to get approved for a home mortgage loan

6 tips to get approved for a home mortgage loan

consider the following while applying for a home loan - knowledge of credit score, keeping cash ready, staying at the job, paying debts, pre-approval, and knowing your eligibility
finance
March 31, 2021
5 min read
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6 tips to get approved for a home mortgage loan

6 Tips to Get Approved for a Home Mortgage Loan

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buying a house is one of the most important and significant decisions an individual makes. getting a home loan approved can be quite stressful. the process of getting a home loan differs from other loans. it is advisable to research the process of securing a home loan thoroughly. preparing well can help you avoid a lot of hassle later.

given below are six simple ways to get your home loan approved. by following the tips given below, you can avoid the hassles in home loan approvals.

1. knowledge of credit score

never be overconfident about your credit score. always check your credit score before applying for a home loan. the possibility of identity theft or credit fraud cannot be ignored. to avoid both, you should check your eligibility online. for a good credit score, you should pay off debts and maintain low debt figures. a good credit profile enables easy approval of your home loan.

2. keep cash ready

cash is needed to make a down payment for the loan. lenders ask for a down payment for the loan amount these days. always keep your cash ready while entering a lender’s office. the criteria for a down payment are different for every lender. prepare for a minimum of 3.5% of the total amount as a down payment.

3. keep working or hold down a job

you must be employed to apply for a loan. a stable source of income boosts your profile score. you must avoid leaving a job or taking up a low-paying one as it can lead to your loan application being rejected. a stable job establishes trust in the minds of lenders regarding your repayment capability.

4. avoid being under debt when taking a loan

always make sure you pay back all your debts and credit card bills before applying for a home loan. you should also ensure that you do not take on new debts. your credit account balance need not be zero while applying for the loan, but it is better to have the least possible debts. your debt to income ratio is calculated before approving the loan.

5. pre-approval for a mortgage

you should get a pre-approval for your home loan. it will help you manage your budget. you will know your exact amount of eligibility, and you can plan your finances accordingly.

know your home loan eligibility with a home loan calculator.

6. know how much you can afford

always make sure that you consider other costs associated with the purchase and not just the price of the house. you should know what you can afford.

conclusion

though it seems daunting, don’t be worried about applying for a home loan. carefully follow the points mentioned above to ensure instant approval of your home loan.