{"id":1552,"date":"2020-10-07T18:21:48","date_gmt":"2020-10-07T18:21:48","guid":{"rendered":"https:\/\/www.voozon.com\/?p=1552"},"modified":"2020-10-07T18:21:48","modified_gmt":"2020-10-07T18:21:48","slug":"put-the-house-on-it-5-things-that-can-affect-a-mortgage-application","status":"publish","type":"post","link":"https:\/\/www.voozon.com\/put-the-house-on-it-5-things-that-can-affect-a-mortgage-application\/","title":{"rendered":"Put the House on It: 5 Things That Can Affect a Mortgage Application"},"content":{"rendered":"

Looking for a house is a thrill. You get to tour<\/a> homes, play designer, and envision a happily-ever-after. Yet in 2018, roughly 40% of Americans reported that buying a home was the most stressful event<\/a> in modern times.\u00a0Why is that?<\/p>\n

Money. Most people can’t envision\u00a0where they’ll be in a year, let alone\u00a0the concept of paying\u00a0for a mortgage for thirty years.<\/p>\n

But today, with mortgage rates at an all-time low, the price is right to buy. So what\u00a0are the five things you can do to\u00a0ensure your mortgage application shines bright on a lender’s desk?<\/p>\n

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  1. Have a Healthy Debt-to-Income Ratio<\/strong><\/li>\n<\/ol>\n

    The first major red-flag on a mortgage application is if you’ve accrued significant debt with no clear end-date for paying it off. A lender needs to ensure you’ll be capable of paying them back in a timely manner.\u00a0Even if you’re likely to receive pay-increases over time, if you aren’t able to pay your debts immediately, they’ll likely pass.<\/p>\n

    If your ratio is out of wack, here’s a great guide on\u00a0why is finance so important<\/a>.<\/p>\n

      \n
    1. Have Excellent\u00a0Credit History<\/strong><\/li>\n<\/ol>\n

      The lender looks at this to see if you have a history of paying back debts. A higher credit score will ensure you get a lower\u00a0interest rate, so make sure to check your credit before going into the application process. Free copies of your credit report can be found at annualcreditreport.com<\/a>.<\/p>\n

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      1. Optimize Your\u00a0Down Payment<\/strong><\/li>\n<\/ol>\n

        Lenders can offer numerous statistics on mortgage payments, depending on what percentage of the home’s cost you’re willing to put down. The standard options are 3%, 5%, 10%, and 20%.<\/p>\n

        To avoid an additional cost, mortgage insurance, you’ll want to try and put 20% down. Don’t blow your savings on a down payment, though. You should save some reserves for emergencies and a lender won’t make this decision for you.<\/p>\n

          \n
        1. Have Extensive\u00a0Work<\/a> Experience<\/strong><\/li>\n<\/ol>\n

          You need to have a proven track record of earning income. Lenders require proof of income, up to several months prior to asking for a loan.<\/p>\n

          Don’t switch careers if\u00a0you’re looking to apply for a mortgage in the near future.<\/p>\n

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          1. Don’t Stop Once You’re Pre-Approved<\/strong><\/li>\n<\/ol>\n

            Before you close on a house, a lender will check again to see if anything has changed in your credit history. This means, even if you’re pre-approved, don’t take out credit\u00a0for another major purchase, don’t switch jobs, and keep paying off any debts you may have.<\/p>\n

            After the Mortgage Application:\u00a0The Appraisal Price of a Property<\/strong><\/p>\n

            If\u00a0you go to make an offer on a home,\u00a0you’ll need to hire an\u00a0appraiser to come check out the property. The appraiser’s job is to make sure that the home is worth what the lender is paying for it.<\/p>\n

            Things they’ll ask: was the home a quick flip? Are there urgent repairs needed, such as a new roof or replacing windows? These questions will lead\u00a0an appraiser to determine if what you offered for the home is worth the cost.<\/p>\n

            If it’s not, you’ll either need to renegotiate\u00a0the price with the seller,\u00a0pay the additional cost out of your savings, or ultimately pass on the home.<\/p>\n

            Food for Thought<\/strong><\/p>\n

            Be honest with your lender in your mortgage application, and lead with your best foot forward. They want to\u00a0help you get a home; they just want to ensure you’re\u00a0not stuck with a mortgage you can’t pay.<\/p>\n

            If this helped and you’d like to learn more, check out our other finance<\/a> articles below.<\/p>\n

             <\/p>\n","protected":false},"excerpt":{"rendered":"

            Looking for a house is a thrill. You get to tour homes, play designer, and envision a happily-ever-after. Yet in 2018, roughly 40% of Americans reported that buying a home was the most stressful event in modern times.\u00a0Why is that? Money. Most people can’t envision\u00a0where they’ll be in a year, let alone\u00a0the concept of paying\u00a0for […]<\/p>\n","protected":false},"author":1,"featured_media":1553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[156],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/posts\/1552"}],"collection":[{"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/comments?post=1552"}],"version-history":[{"count":1,"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/posts\/1552\/revisions"}],"predecessor-version":[{"id":1554,"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/posts\/1552\/revisions\/1554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/media\/1553"}],"wp:attachment":[{"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/media?parent=1552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/categories?post=1552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.voozon.com\/wp-json\/wp\/v2\/tags?post=1552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}