How to get your mortgage loan approved?

Some home buyers don’t know the first thing about getting a mortgage loan. They hear reports of lower home prices and lowest interests in San Jose and quickly decide to jump into home ownership.  But remember, the process of getting a home loan is different than getting an auto loan or renting an apartment. And home buyers who do not recognize these differences are sometimes disappointed when their mortgage application is denied by a lender. So educating yourself is important to avoid disappointment and hassles.

There are a few tips you should consider for getting best San Jose mortgage rates and getting your mortgage loan approved.

Review your credit history and credit scores

It hardly takes a few minutes to pull your credit scores and history. Surprisingly, many future homeowners never review their scores and credit history before submitting a home loan application.  Your credit scores and history have a major influence on mortgage approval. In addition to higher credit score requirements, many missed payments, late payment fees and other derogatory credit information can stop mortgage approval.  In order to avoid these circumstances, you should pay your bills on time, and lower your debts for fast mortgage approvals. Fixing errors on your credit report and cleaning up your credit history beforehand will give you an advantage.

Pay your existing debt and avoid new debt

According to experts who help home buyers get best San Jose mortgage rates, it is not necessary to have a zero balance on your credit cards for a mortgage loan. However, the less you owe your creditors, the better. Your outstanding debts will determine if you can get a mortgage, as well as how much you can acquire from a lender. Even if you have been approved for a home mortgage loan, keep away from new debt while going through the mortgage process. Mortgage lenders re-check credit before closing. If additional or new debt is revealed, it can stop mortgage closing.

Know what you can afford

It is you who has to decide how much you can afford for the mortgage loan. You should not let lenders dictate how much you should spend on a mortgage loan. Consider your regular expenses and find out whether you are in a position to apply for the mortgage loan or not.   

A professional mortgage broker will recommend you to avoid any major purchases until you have closed on the mortgage loan. This can include financing your car or purchasing a heavy home appliance with your credit card. Along with helping you in getting your mortgage loan approved, the mortgage broker will help you get a loan at the lowest interest rates in San Jose.