Home loan approval undergoes a lot of factors. There are 4 major ones namely credit score, the applicant's monthly income, the ability to give a down payment and lastly debts. An applicant must do well in all those factors to become an attractive client.
Fortunately, every factor is within a person's control. One has to take a look at different options and check their resources if they can match the requirements and thus get an approval on their financing.
To help you out and with your application. Here are tips to make you a more attractive applicant.
Tips you can Use Now
Try as hard as you can to have good scores and credit:
Banks and other lenders think of credits scores as the standard to check out if an applicant is capable of paying their loan monthly. So when they check out your score and see a low one, they'll think that you are a risky client.
On the other hand, if they see a score that's high, they look at you as a good client and offer you more benefits.
You do not want to apply for a loan with a bad credit. You'll be facing higher interest rates because this is how banks compensate the risks of approving your loan. You also receive lesser benefits and lastly you'll be lucky to get your application approve at all.
So how do you make yourself a more attractive client?
Simple, Settle your debts and expenses. You can easily give your credit score the push it needs by paying your revolving debts like credits card fees and auto loans. You can also pay and shop through your debit card instead of the credit card. You can also pay your bills every month and ask credit report agencies to help you fix any errors in your credit report.
A last tip, do not open another credit account because lenders see this as a red flag.
Switch Companies to get a higher salary under the same line of work:
Sometimes what you are earning now doesn't match the requirement for your loan application. So when this happens, ask your lenders the exact amount of income you need to have monthly in order to get the loan. Then seek out another company, under the same line of work but a higher salary.
You should remember that changing careers is not an option.
Well lenders like a good and steady employment history and since your current job doesn't give you the income you need you can only do this by switching companies and not changing careers.
Part time jobs are not good for you. Even though they give the extra money, lenders want something that's in for the long-term because you'll be paying them for the next 15 years.
So what you can do is switch companies. There will always be someone who seeks out people like you whom offers bigger pay.
If that doesn't work try to work out a plan for higher education to get that promotion which promises bigger salaries for your home loan.