There’s a lot that goes into getting a mortgage. Waiting to get approved until after you’ve found your dream house may mean you lose out on the house you want. Because of this, buyers need to be as prepared as possible to avoid any unnecessary delays. Here are some of the things that you should do in order to get pre-approved for a new mortgage.
Have a Solid Job History
It can be very difficult for an individual to get pre-approved for a mortgage if they don’t have a solid job history. It’s best to be able to show that you’ve worked at the same company for at least two years. If you have changed jobs within the last couple years, your lender will likely ask for contact information for your previous employer. They want to see that you won’t lose your source of income suddenly.
Talk to a Mortgage Broker
Many buyers will find it beneficial to talk to a mortgage broker before they seek pre-approval. The broker will be able to give you a better idea of what you need to do to qualify for a mortgage. They will also let you know the different types of loans that are available to you . Finally, they can connect you to lenders that will work best for you.
Increase Your Credit Score
In order to get pre-approved for a mortgage, you will need to have a decent credit score. Your score should be at least 620 for most lenders. However, some individuals will need to have an even higher score in order to be approved to buy a house.
Get Rid of Debt
The amount of debt you have can greatly impact your ability to get a mortgage. When you are planning to get pre-approval, you should try to pay down as much of their debt as possible. Before buying a house, it’s a good idea to get rid of credit card debt and pay down automotive and student loans.
Fix Errors on Your Credit Report
A lot of individuals have errors on their credit report that can keep them from getting a mortgage. To prevent this being an issue, you should check your credit report to look for inaccuracies before you seek pre-approval. If you do notice that something on it is wrong, you should have it removed before you apply for a mortgage pre-approval.
Before looking for a home, buyers should get a pre-approval for a new mortgage. It will allow you to know exactly how much they can spend on a home. However, you do need to do some things beforehand in order to ensure that you have the best chance of getting the pre-approval that they need.