Sunday, March 20, 2011

Home Loan Approval - Your Best Financial Footing

This article describes some basic steps one can take to improve the chances of approval for a mortgage loan.

Have Stable Monthly Budgeting Habits

It is a good practice whether awaiting for a loan approval decision or not to always maintain a stable monthly budget that utilizes wise spending, saving,  and income earning habits.

Maintain Healthy Credit Scores

Your credit scores and your credit reports will have a big impact on the lenders decision to approve or deny you the funds you need to buy a home. You want to ensure that your credit score is as high as you possibly can get it. This means checking your reports and ensuring that all info and activity is accurate and that their are no mistakes that are hurting the appearance of your credit history.

Make sure you understand credit score basics so that you are able to do what you need to do if something is out of place. If you don't understand what your looking at than how will you know if it is OK?

Pay Off Unsecured Consumer and High Interest Debt

If you have credit card debt, owe money on store credit accounts, personal bank loans, or any sort of high interest debt than you really should pay it off.

Lenders are not going to want to lend money to folks that owe on a lot of rip off high interest credit cards or other sorts of unsecured debt.

At the very least you need to consider a debt consolidation loan with more favorable terms.

Be Upfront with The Bank or Lender - Tackle Obvious Approval Issues First

If there are some obvious weaknesses on your loan application it is a good idea to bring them up first. This allows you to offer an explanation instead of coming up with an excuse for when they find out about it anyways. Plus you will be able to avoid applying for the loan if the weakness is a automatic disapproval trigger for the lender.

If nothing else this will make you appear and feel more responsible as a borrower.

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