Georgia FHA Mortgages: Mortgage Approval Factors
At the time you apply for a mortgage, your chosen lender will consider many factors. These factors influence the types of loans you are eligible for and also what your interest rate, monthly payments and loan terms will be.
Becoming aware of these factors and taking action to improve them all can give you a distinct advantage as you start the approval process that you hope will result in closing on your new property. Your actions can determine success or failure.
The basic factors apply for any type of loan approval, but they are particularly important when trying to get approved for what is probably the largest loan you will ever apply for. The most important factor is credit.
Have you seen your credit report lately? Most people haven’t. Get a free copy of your credit report from each of the 3 major credit reporting agencies from the annualcreditreport.com website with just a few minutes’ effort.
Credit reports commonly include inaccurate information which damages your credit score and needs to be corrected. You can challenge incorrect information directly at the source and greatly improve your credit score prior to applying for a loan Pay off all credit balances showing on your credit report if you can but don’t close any accounts.
The size of your down payment can make a huge difference in your chances of being approved. If you have credit problems, the bigger the down payment, the less impact from your credit score.
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.
The absolute most important rule is never lie to your lender. Do not tell them you have been on the job 5 years if you have only been there 6 months. These things will be followed up on and that will just cause a delay. Your mortgage originator is there to help you, so be honest and you will get the best possible loan approval.
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