Factors of Mortgage Approval

By
Services for Real Estate Pros with Tax Resolution Society LLC

When applying for a mortgage, the lender you have chosen will take many factors into account. These factors not only influence what type of loans you can qualify for but also what your monthly payments will be and how many years you will take to pay the loan off completely. Knowing these factors and doing what you can to improve them all can make a tremendous difference when you go and see your lender and start the process that will get you your new property.

Some of the basic factors apply for just about any loan but are especially important if you are trying to get a mortgage. The big one is credit. How good is your credit? Get copies of all of your credit reports from the 3 major consumer reporting companies and check each one for errors. Many times, they have errors that can be corrected in just a few weeks and that helps boost your score. If you have credit cards, pay them off as well as any other outstanding bills.

A nice large down payment will always improve your chances of being approved. If your credit isn't completely top notch, the bigger the down payment, the more likely you will get improved. If your credit is great, you can still put down as much as possible to lower the monthly payments or decrease the total loan time.

Above all else, don't lie to your lender. If you tell them, you are a supervisor of a power plant and they find out you are a UPS man who has only had the job for 6 months, you will be totally screwed. Be honest and your lender will do their best to work with you.

Comments (3)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Kokou Michael Logossou very good report about factors of mortgage approval.

Aug 05, 2021 05:31 PM
Kokou Michael Logossou
Tax Resolution Society LLC - Philadelphia, PA

Thank you John Pusa 

I think that it is important for anyone who is looking for a new loan to understand those factors about the mortgage loan approval process.

Aug 05, 2021 06:37 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

Aug 08, 2021 06:30 AM