How to Boost your Chances of Getting a Home Loan
We all know that home loans aren’t the easiest things to apply for in the world – and there’s also the issue that you may not even have your offer accepted. You may think that if your offer gets rejected first time that you don’t have a chance and that you should give up hoping to own your own home.
But you shouldn’t, because there are ways to get a better chance of being accepted. If you are ready to learn how to boost your chances of getting a home loan, then you need to read this article.
Your credit score
Your credit score can affect your chances of having your offer accepted, so it’s important to make sure that yours isn’t bad. If you want to be accepted, a lender will want to know that they can trust you to pay them their money back – and your credit score can be the easiest way to tell how reliable you are at doing just that. It will show them your financial history, whether it’s good or bad. If you have a bad history with your finances, then a lender is unlikely to accept your offer.
A credit report includes:
- previous credit cards
- previous loans and mortgages
- any monetary accounts that have been active for the past 6 years
Before you go to talk to a lender about your offer, you should check your credit score (it’s free, so don’t worry about needing to pay even more money out) and see if it’s not only good, but also accurate and correct.
A lender will know what they want and need to be able to tell whether they should accept your offer and lend you money. The things that a lender will look for are:
- the size of the loan
- your finances and income
- your credit score
- existing debt and loans
- the amount you have set aside for a deposit
- how much you intend to borrow
If you provide everything that shows a lender that you’re reliable and can be trusted to pay them back their money, you shouldn’t have an issue. If you don’t have what they need to see, then you may not have a good chance of being accepted.
Make sure that you do whatever you can to make yourself look as good as possible (without stretching the truth), because it can really make a difference.
Mortgage brokers are people who are able to help you compare and find the right loan, a good loan and they can even boost your chances of acceptance. They’re really useful for both first time buyers and experienced buyers, too. You can use their online home loan calculators as well to help you do the early number crunching for your loan.
They do the leg work for you and offer you helpful advice all through the home loan process – and this is a benefit that everybody can stand to enjoy. To help with your home loans and property investments Omega recommend Auction Whiz buyers and bidding agents.