Who can qualify for an FHA loan? some people qualify for home loans and purchase the property of their dreams. On the other hand, many people end up having their applications denied. If you are interested in becoming a homeowner and you are worried about whether or not you will be successful, here are 6 tips that will increase the chances of things going in your favor.
When you apply for a home loan, you will be asked to supply proof of all money you have made in the past two years, This includes wages you have earned from your job as well as things like alimony, child support, and bonus earnings. Your W-2 statements and your tax returns will be key, so make sure that you have copies of all this available. Applying for a mortgage without having this available is a surefire way to end up with a denial. There are different types of home loans so you should know which loan is best for first time home buyers.
2. Verify Your Current Income
This part is twofold, so make sure that you pay close attention. It will be necessary for you to gather your last few pay stubs to prove the amount you are bringing home weekly. Also, it is likely the lender will contact your boss to make sure that you work there. While they are not allowed to ask for most personal information, they will ask about the dates you started work as well as the amount of your salary. For this reason, you must be totally honest when you are filling out all of your paperwork.
3. Focus On Your Credit
Owning a home in Texas is quite hard. There is no way that you will qualify for a loan if your credit is in bad shape. If you know that your score is not as high as it could be, this is something that you should take care of before you even bother to apply. Also, if your credit is in decent shape, try your best to keep it that way. This means that you should avoid applying for credit cards, making big purchases, and anything else that can hurt your credit rating.
4. Try Getting A Raise
The more money you make, the more likely is lenders will be willing to take a chance and offer you a loan. If you have been working at the same place for quite some time, you should consider asking your boss for a raise. Even if it is only a dollar or two more, this will look great when it comes to determining whether or not you will be able to keep up with monthly mortgage payments.
5. Save More Money
When you have more money available for a down payment, this means that the lender will not have to approve you for such a large amount. As a result, you are much more likely to be funded. Having more money yo pay upfront means that the lender will have less liability, which would make you a far more appealing candidate for a loan. While most people aim to have about 15-20 percent of the purchase price available, having 10-15 percent more means that you can look forward to lenders who are more willing to work with you and monthly payments that are far more affordable.
6. Move Quickly
Once your application is accepted, you should move forward with the home buying process as quickly as possible. There are occasions when things happen and mortgages fall through. You can avoid having this happen to you if you avoid hesitating. The longer you wait to complete the process, the more opportunities you are giving the lender to change their mind.
Keep in mind that appraisals can take quite some time; speak to your lender about this to see if there is anything they can do to expedite things.
Buying a home is a common process, yet many are not able to do so because the loan process is far too complicated. If you are interested in applying for a home loan you must learn what are the different types of home loans that would suit your budget. If you also want to increase your chances of faring well, make sure to keep all of this information in mind.