Seeking a Mortgage: What Lenders Consider Important

bullet imagebullet imageThe idea of owning a home is appealing, but it pays to have a few things in order before seeking any type of financing. Just about all Austin mortgage lenders have certain expectations that must be met before a loan will be approved. Here are some thoughts on what lenders consider important and how to improve the odds of getting that loan.

Stability

While the applicant does not have to be rich, indications that the individual is stable in terms of employment and general finances will always be a plus. For example, how long has the applicant worked for the same employer? Someone who has been there for at least a few years obviously is dependable and shows promise of honoring commitments. Couple that with the fact that the applicant has excellent payment records with the utility companies and the current landlord, and the lender is likely to dig a little deeper into the application.



Owing Money

Having debt will not exclude anyone from obtaining a mortgage. The key is how much debt is in place and how well the applicant is managing the obligations. For example, if the applicant currently has a car payment that is up to date and a couple of credit cards with low balances, this is a good indicator that the individual pays bills on time. Assuming the amount of debt involved only consumes a certain percentage of the monthly income, the lender is more likely to consider the applicant to be a good risk.

Credit Scores

Rest assured that any financial institution that extends home purchase loans Austin will secure copies of the credit reports of applicants. Some lenders may check with only one credit agency, while others may pull reports from at least two. The detail on those reports will often be the deciding factor between denying the application or approving it. For this reason, it pays for the applicant to request copies of reports from all three of the major agencies and make sure the details are correct and up to date.

Remember that if today is not the best time to seek a mortgage, it is possible to identify what needs to change and set out to take care of those issues. Doing so could mean being able to obtain a loan in a couple of years and lock in some excellent terms.