FHA Mortgages In Georgia: Get Your Mortgage Approved
When you apply for a mortgage, the lender will weigh many factors before making a decision. These factors determine which types of loan you qualify for and what the interest rate and terms will be.
Knowing the factors considered by the lender, and taking steps to improve your scenario ahead of time can make a tremendous difference in the processing of your loan. Preparation can literally make all the difference in the world.
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.
Do you know what your credit report looks like? Each year, you can get one free copy of each of your credit reports from the 3 major reporting companies. You should get these reports and check for errors. They are available on the annualcreditreport.com website at no charge.
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.
A large down payment will greatly improve your odds of approval. If you have had credit problems, the negative impact of your credit scores is a less influential deciding factor.
If you have great credit, you can still obtain better mortgage terms by increasing your down payment
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.