Tips To Get Approved For a Home Loan 

Introduction

Getting approved for a mortgage can be tough, especially if you’ve been turned down before.

Go to any mortgage lending website, and you’ll see images of smiling families and beautiful homes accompanied by text that makes it sound like lenders are standing by just waiting to help you find the loan that works for you no matter what your situation.

In reality, lending such large amounts of money is a risky business for banks. In other words, banks aren’t going to lend you hundreds of thousands of dollars unless they’re confident you can pay them back and on time.

If your dream of owning a home has been dashed by loan officers denying your application, you can take the following steps to help you get back on the path to homeownership.

#1. Wait

Sometimes conditions in the economy, the housing market, or the lending business make lenders stingy when approving loans. If you were applying for a mortgage in 2006, banks were offering no-income verification loans. However, those days are long gone. Today, banks are scrutinized by regulators to ensure that they’re not taking on more risk than they can handle. If the economy doesn’t support a robust housing market where banks are actively lending, perhaps it’s best to wait until the market improves.

#2. Work on Boosting Your Credit Score

You can work on improving your credit score, reducing your debt, and increasing your savings. Of course, you need to first obtain your credit score and get a copy of your credit report. 

#3. Manage Your Credit Cards

According to Emilia Flores, the co-founder of UkBadCreditLoans, making on-time payments is critical to boosting your score. Also, pay off some of your debt so that your card balances are not close to the card’s credit limit; called credit utilization. Credit utilization is a ratio reflecting the percentage of a borrower’s available credit that’s being utilized. If a card has a limit of $5,000 and a balance owed of $2,500, the credit utilization ratio is 50%.

If you need help, you can reach out to us on 08 9370 5515 or send an email to elitetax@successwa.com for enquiry.

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