Save your money to buy that dream home. However, your cash savings can only take you far-one of the best way to get that missing balance is to get a mortgage. Getting a mortgage has its advantage and disadvantages. One is that Lenders follows strict rules and process to approve or pre-approve your loan. In most cases you’ll get rejected on that application. But is it that other are pre-approved on their loan. Well here are the things they avoid to get an approval.
- No Stable Income
Borrowers often have a stable income to support and cover all their expenses. Without a steady flow of income, (unless you are a millionaire) lenders won’t hesitate to deny your application. Lenders are mostly bankers and people who value money and good investment, if they can’t get anything from it, then why bother. Having a stable income and staying at a job for two will guarantee you an approved loan application. Lenders would need to see if you are capable of paying your mortgage and that you don’t have bad credits. They need to know that they can trust you and that they will get a good investment out of you.
- Bad Credit History
If you are at your neck will all your debts and loans, lenders will definitely deny you that loan. Why would they waste their time on you when they can clearly see that you are a delinquent payer and that you are not responsible? Lenders will review all your credits and the history of payments. This way they can be re-assured that they will not take high risk in an uncertain investment. In order to have a good credit record you to:
- Pay your bank and credit lines on time!
- Save up and don’t buy things that you can hardly afford and that you don’t need.
- Get a job
Through this steps you’ll have a good track on your credit score and will Gain trust from your bank, lenders and benefactors. Having a good credit record will show that you are a reliable person and that your loan will be a good investment for them.
- Debts all Over
No one will allow you to handle their money and business if you are negligent and delinquent. If you have a huge debt and intends to file a mortgage loan, well think again. This is a red flag for them. How can they lend you a lump sum of money when you are in a huge file of debt? They will not only take a high risk without guarantees and without a return of investment.
Getting another mortgage will bury you not only in debt but could cause you your job, your life and your personal relationship with others. So start paying your debts up. Save money and work. Do not buy things that you can hardly afford or need. Save up for the rainy day and always pay your debts.
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