Getting your mortgage loan approved can indeed be very challenging. While many steps could improve the chances of getting a mortgage loan, some steps could destroy and ruin the chances of getting a mortgage loan. This could be disappointing and therefore you must avoid the same. Here are a few points that you must be careful about so that you don’t end up damaging your mortgage loan application.
Don’t Pile Up Large Debts
While technically it might be possible to get a mortgage loan based on your credit card spending and repayment habits, too big debts on your credit cards could be a problem for you. Hence, if you are keen on getting a mortgage loan with the best possible interest rates, make sure that you take steps to pay off as many debts as you possibly can.
Bad Credit Score
Having a poor credit score happens because of bad credit history. You could have CCJ or County Court Judgments or even bankruptcy proceedings on your credit record. These can become show-stoppers and can prevent you from getting a mortgage loan. Even if you get, the rate of interest may be very high and you may not be able to afford it.
Lack of Credit History
Applying for a mortgage loan without a credit history is like applying for a job without a CV. A credit score helps the lender to find out how reliable you are and how fiscally disciplined you are when it comes to handling your cash and money. They fall back upon some kind of history to make sure that you have a reasonably good credit union in OKC. Hence, if you are planning to go for a mortgage loan, it would always be better to build a good credit history and then approach the banks or money lenders.
Stay Away From Non-Standard Property
If you end up buying a non-standard property and then expect to get a mortgage loan you will not be successful. Most lenders are not keen on granting mortgages to non-standard properties. You should avoid apartments that are located above commercial premises including restaurants, pubs, and shops. These properties tend to get damaged fast and there are elements like the smell, rubbish, noise and security problems that could make such properties a riskier proposition from the lender’s perspective. You can get in touch with professionals for this purpose and many online resources could help you with this.
Don’t Overborrow
Many people end up over borrowing as far as their mortgage loans are concerned. In other words, they apply for a mortgage loan amount that is much more than what they can afford. Such applications are not likely to go through the credit appraisal departments of the lenders. They would always like to be comfortable with the mortgage loan amount that they are offering to their borrowers. Hence, try and restrict your borrowing to around 90% of the overall cost of the property.
The Final Word
In fine, there are several things that you must bear in mind when you are planning to avail of a mortgage loan. You must do your homework and avoid mistakes that could spoil the chances of getting a mortgage loan in the first instance.