Imagine this- You save up for years, you do your research, you finally find your dream home and your home loan doesn’t approve!
Shattering, isn’t it?
Well, being approved for a mortgage is one of the biggest obstacles you’ll encounter.
If the lender doesn’t find you as a financially trustworthy applicant, it is most likely that you shall be deprived of a home loan.
While this scrutiny can be upsetting, there are definitely some preparations you can make to improve your chances of getting your home loan approved!
The bank or the lender would want to ensure that you are a regular saver. Make sure you transfer some funds to your savings account every month against “House deposit” in the reference field. Keep it clean to show the bank how serious you are about saving funds for your new home!
When it comes to home loans, nothing is worse than having debts on your repayments. If your credit score is not outstanding, make sure you improve it by making payments on time and clear out the credit card debts. Remember, a good credit score is a key to impress the banks to approve your loan.
If you have had approved loans prior to this one, make sure you present the pre-approved letter to your current lender.
This would work as an assurance that you are sincere and capable of affording the loan amount that you’ve applied for. A pre-approval letter can truly help you streamline your mortgage process and boost the chances of your loan being approved!
In order to be approved for a mortgage, having a steady employment is important. If you are applying for a home loan, do avoid changing jobs. If not, your bank or lender would be concerned about a steady source of income at your end, which could lead to your application being denied.
On the other hand, staying stable at your job would give you a stronger chance of getting approved.
Getting your mortgage approved is definitely not a cakewalk. However, by following these tips, you can improve the chances of your loan being approved. May you acquire your dream home sooner!