How to Prepare Yourself to Qualify for a Mortgage

So you’re ready to buy that house you’ve always dreamed of buying. That’s a wonderful goal you have set. However, you’re going to need to take a few steps before you can gain approval for a mortgage. These are some of the things you can do to increase your chances of getting approved for a good mortgage deal:

Check Your Credit

Your credit score and report are the two most important things you need to get a good mortgage deal and rate. You will need to have a high score to gain access to the best interest rates. You’ll also need your score to be high enough to get approved for certain mortgages. For example, you will need to have a score of 580 points or more to qualify for an FHA loan

You can start your process by ordering a copy of your credit report from each of the bureaus. You can then review your report to see if anything suspicious is in it. If so, you can go ahead and dispute those items to see if the bureaus can remove them. Your score will improve if the bureau can remove foreign accounts. 

Save up a Down Payment

The next thing you’ll need to do is save up a healthy down payment. The higher your down payment is, the less money you’ll have to pay each month for your mortgage. You’ll also make the lender more willing to loan you the funds. Furthermore, you may be able to avoid purchasing certain insurance policies if you give up a large down payment. An ideal down payment is 20 percent of the cost of the home. You could also go for 10 percent if you don’t have that much. 

Get Preapproved

Your best bet is to apply for pre-approval from a mortgage company before you apply for the full mortgage. With a preapproval, you won’t have to put an inquiry ding on your credit report or have your score fall down a few numbers by applying for a mortgage unnecessarily. The process will be a lot easier for you if you apply for preapproval and get a letter that states you are preapproved. 

Contact a Mortage Broker

Contacting a mortgage broker Denver agency is the best way to get the best deal on a mortgage. Brokers are not partial to one mortgage company. They have access to rates and information for a variety of mortgage companies. By using a broker, you can relax and let the broker search for the mortgage company that meets your needs. All you need to do is tell the broker what you’re looking for, and the broker will input your data and find mortgage companies that match up with your needs. Try that instead of searching aimlessly for the best deal and rates. 

Grab an Awesome Mortgage Deal Today

Now you know what you need to do if you want to get mortgage approval for your dream home. Take the steps mentioned above, and you should get approval in no time.