Top Home Loan Factors
Posted on: September 15, 2015 by Signature Insurance Group
When it comes to obtaining a mortgage loan, lenders look at a variety of factors while figuring out your eligibility and calculating your rates. Along with making sure you have the best Orange County Home Owners Insurance, there are some key factors that can affect your chances of approval that you need to be aware of when applying for your home loan.
- Credit- While you want to make sure to keep your credit as clean as possible, it is a good idea to obtain copies of all three credit reports before you apply for a loan. Look over the reports and make sure there are no errors. Many credit reports do contain errors and if you do not get them fixed, they can affect your application.
- Credit Cards- You want to make sure that you have little to no outstanding debt. Paying off all your credit cards and outstanding bills will help your loan process. It is also a bad idea to apply for new credit cards or close credit card accounts because it makes lenders suspicious of your reasoning.
- Income- All lenders want to make sure that you have a steady source of income before approving your home loan. This means that changing jobs right before applying for a loan is not the best idea.
- Price Range- Lenders will not authorize loans that are our of your price range. Figure out how much you can afford to pay on a monthly basis before applying for a loan.
- Interest Rates- While interest rates wont effect your obtaining the loan, they will effect your monthly payments. Interests rates change regularly so consider paying a ‘lock-in’ fee to reserve a lower rate.
- Down Payment- The more you are able to put down on your own, the lower the loan you will be asking for and therefore the greater the chances of being approved. If your credit is not so great, you are likely to need a larger down payment in order to obtain approval.
- Available Funds- Along with the down payment you will have to pay closing costs. Making major purchases before applying for a loan, risks depleting your funds.
- Lender- Every lending company is different. Do your research to find out their approval percentages and their ratings. Knowing a companies reputation can help determine if they are the right lender for you.
- Honesty- If you try to alter or hide information in order to be approved, you risk being charged with fraud. Be honest and fully disclose any information asked of you.
Doing a little bit of research when applying for a home loan can save a lot of heartache during the application process.
At Signature Insurance Group we know that choosing the right Home Owners Insurance is important. Call us today for more information on how we can help you get the coverage you need. 855.972.9437
Posted in: Homeowners Insurance