Guide to Getting Approved for a Mortgage Loan

Two people shaking hands over a loan agreement

Two people shaking hands over a loan agreementThe pain and disappointment that a denied mortgage loan application can cause could be heartbreaking. It’s usually because the applicant didn’t have the right knowledge to make the right decisions.

City Creek Mortgage explains that mortgage rates in Salt Lake City are always changing. This is a very important factor in understanding your loan application. You also need to consider your income and credit score. If you’re a first-time home buyer, here are some tips on how to get your mortgage loan application approved:

1. Stay in a job that you like

Having a consistent job that provides you with a stable income is one proof that you can pay off the loan. If you don’t have a job or if you’ve been job hopping for a while, your ability to repay the loan becomes questionable.

2. Find a way to reduce your debts

This doesn’t mean you have to pay all your debts in one go, but it’ll help a lot if you kept them low. Find ways to lower car loan debt or credit card debt before applying for a mortgage loan.

3. Improve your credit score

When you lower your debt, your credit score goes higher. The higher your credit score is, the better chances you have of being approved.

4. Save up

There will always be deposits and down payments before you get the keys to your new home. Make sure you know how much you’ll need and save a little more than that amount.

If you haven’t stayed on top of your finances since day one, it may take a while for you to organize these things. If you find it too difficult, you can always get the help of a financial or mortgage advisor. If you’ve managed your finances well, then getting your mortgage loan application approved will be easier and you’ll soon be living in your new home, worry-free.