Whether you’re applying for a house loan for the first time or an experienced buyer, there are a few things to keep in mind to make the process as straightforward as possible.
Here are some pointers to help you feel more confident while applying for a mortgage.
You Must Pay All of Your Bills on Time
It’s critical to have a strong credit history when applying for a home loan, which includes paying all of your obligations on time, every time. Late payments may harm your credit score, which can influence whether you’re approved for financing and, ultimately, the rate and duration you’re offered.
Even when your house loan is paid off, it’s critical to pay your expenses on time because it may damage your ability to apply for future loans.
Be Wary of Job Transitions
When preparing to buy a home, it is critical to have a consistent employment history. After all, you must demonstrate that you have the financial stability and continuity to repay the loan.
“Requirements may vary depending on the sort of employment you have, but there is no set time on the job required for most salaried borrowers,” explains Bill Banfield, Executive Vice President of Capital Markets at Quicken Loans. “Lenders will go at a two-year job history, taking into account schooling or military experience.”
You may be requested to give additional job history and income information depending on your position. There are various income scenarios, and your lender will be able to tell you what is and is not an acceptable source of income.
Conduct Your Own Investigations
With so many home loan options available, choosing the best one for you may be challenging. While a Quicken Loans Home Loan Expert will work with you to discover the best solution, you must understand the fundamentals of fixed-rate, adjustable-rate, FHA, and VA home loans.
It’s also a good idea to look into any loan fees, and you should check your credit report to see where you stand with the credit bureaus.
