Getting a home loan might feel impossible to some people. If you are a first time home buyer then you are probably wondering what you can do to make sure that you get the loan without troubles. There are a couple things that you can do to improve your chances of getting a home loan. Here are some tips.
1. Don't Change Jobs
Once you start the home loan process it is important that you stay in the same position at work. You could be promoted at the same company, but you cannot completely change jobs and companies that you work for. This is because once they start the application, they do all of it based off the work that you have stated in your application. They will do it based on your income, how long you have been at this company and so forth. Thus, while you are waiting for the loan to go through, so from application to closing, you need to stay at the same job. This is the safest way to make sure that it will go through.
2. Save Money For A Down Payment
Second thing you need to think about is saving your money for the down payment. This process shouldn't start a week or two before getting the loan, it needs to happen to months before, giving you plenty of time to get all the money that you need. As a general rule you need to have at least 3% of the house to get approved for the loan. However, ideally you should have 20% of the house to put down. If you do, you save yourself a great deal of money on home mortgages insurance. 20% will help you to get the loan, as well as prevent any extra insurance costs.
3. Pay Down Debt
Lastly, you should do everything that you can to get out of debt. The more debt you have the harder it will be to get a house that you want. This is because they calculate how much they will give you in a loan based off your debt to income ratio. The more you have in debt the less you will qualify for in the home. But also, if you have too much debt it will cause you to lose the loan because the lender won't loan to you if they think you have too many debts to pay each month.
By knowing these things you can get close to buying your home.
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