Home ownership is among the greatest aspirations of many young adults. Transitioning from renter to homeowner can imbue you with a tremendous sense of accomplishment and make you feel like the master of your own domain. However, unless you’re independently wealthy, becoming a homeowner will require you to be approved for a mortgage. Additionally, failing to make the proper preparations in advance of submitting your paperwork can result in a number of undesirable consequences – most commonly, rejection. Aspiring homeowners who want to increase their chances of mortgage approval would be wise to take the following precautions.
- Get Your Debt under Control
Unsurprisingly, outstanding debt is a huge red flag for many lenders. Prospective homebuyers looking for mortgage companies in PA are liable to have a hard time finding lenders willing to take a chance on applicants saddled with immense debt. After all, if an applicant is unable to get a handle on their existing debt, what are the odds they’ll be able to make mortgage payments on time? With this in mind, hopeful homeowners should get any outstanding debt under control before submitting their paperwork. This may mean putting your dream of homeownership on hold for a while, but your patience will ultimately pay off in the form of mortgage approval.
- Postpone Making Purchases That Will Increase Your Debt
Making large purchases while a mortgage application is being considered is among the most common mistakes made by potential homeowners. Needless to say, this can be particularly detrimental to your chances if such purchases are made on credit. If you want to show lenders that you’re a reliable, financially responsible borrower, making an enormous purchase shortly before or after submitting your mortgage application won’t do you any favors. So if you find yourself in need of a new vehicle, electronic device or any other pricey item, it’s in your best interest to hold off until a lender has given you their decision.
- Remain at Your Job
It’s very difficult to find a mortgage lender who’s willing to put their faith in an unemployed applicant. A home is the most expensive purchase many adults make in their lifetimes, and in the absence of gainful employment, most people can’t afford to make mortgage payments. That being the case, quitting a job while a mortgage application is being considered is one of the worst things you can do to yourself. Even if you’re thinking about leaving your current job, you’ll be better off sticking it out until your application has been ruled on.
Nothing quite compares to the satisfaction of being approved for your first mortgage. If homeownership is something you aspire to, it pays to approach the mortgage approval process with caution. Depending on the lender, a simple mistake can sink your chances of landing the mortgage of your dreams, so it pays to be thorough. Aspiring homeowners looking to have their paperwork approved in a timely manner are sure to benefit from the previously discussed pointers.