Buying your dream home is one of the most exciting things that you’ll ever do. But it’s also one of the most stressful things you’ll ever have to go through. One recent survey revealed that about 40% of people believe that buying a home is actually the “most stressful event in modern life.”
Getting a loan might make it easier for you to afford your home but the process of getting an approved loan can be quite stressful. The uncertainty over whether or not you’re going to get approved for a loan is often too much for some people to take.
Here are some tips that will help you get your hands on an approved loan so that you can make buying your dream home a reality.
Consider Getting Pre-Approved for a Mortgage
If you’re getting ready to look around for your dream home, do yourself a favour before you get started and seek pre-approval for a mortgage. It doesn’t take long and could save you from falling in love with a home you can’t afford. When you get pre-approved for a mortgage, you’ll know about how much you qualify to borrow to buy a home. This will help you come up with a house-buying budget and prevent you from looking at homes that are too expensive and help you focus on more affordable homes.
Bring Your Credit Score Up
There are so many ways to bring your credit score up in a relatively short period of time. You just need to be willing to work at it. You can improve your credit score by:
- Disputing any errors that you find on your credit report (they’re more common than you might think!)
- Paying off as much debt as you can
- Opening up new lines of credit and being responsible with them
Hold off on any career changes
Lenders want to see that you can hold down a job. Generally speaking, most lenders like it if you’ve been with the same employer for a minimum of six months (not including probation periods).
But if you’ve just started a new job, don’t panic yet. In that case, lenders will look at what you did for a crust immediately before your current role. It’s usually enough if you’ve been in a similar role in the same industry for many years (or at least for the past two). If you’re a casual job hopper, the news isn’t so great. Most lenders will see you as a wildcard, a risk too great to take on.
Don’t apply with too many lenders at once
Don’t put all your eggs in one basket, right? Wrong.
It’s important to compare lenders, but submitting applications to several lenders will show up on your credit report. While it won’t have a massive impact on your credit rating, it is frowned upon by lenders and it just doesn’t look very good – especially if you’ve already been denied for a loan multiple times. It’s a much better idea to compare all your options first, then apply for a loan once you’ve identified the right one for your needs.
Looking for the right lender but don’t know where to start? We can help.
Parkvuehomes is a boutique financial services company that offers over 25 plus lenders with over 500 products to choose from, catering to all types of borrowers and our mortgage brokers work hard to get even the toughest loans approved. With over 10 years’ experience in the banking finance industry, we offer the best solution for our clients.
