Getting approved for a mortgage is an essential part of buying a Knoxville home, particularly for first time home buyers. Unfortunately, with tightened mortgage standards, it isn’t always a cake walk. Here is how to boost your mortgage approval chances when buying a Knoxville home sale.
One important thing to help boost your chances at getting approved for a mortgage is to have stable employment. A lender wants to see that you hold a stable job so that you won’t have any trouble making your monthly mortgage payment. Someone who jumps from job to job can seem risky.
Another thing that lenders want to see is that you have stable income. Generally, those who are salary or hourly will have an easier time getting approved for a mortgage to buy a Knoxville home for sale. If you have a job that is commissioned based, it won’t be impossible to get improved for a mortgage, it jut might be a bit more work. In order to have commission count as income, lenders generally require 2 years of income for it to be counted. Income is important because a lender wants to see that you will have enough money every month to pay your mortgage.
Good credit is another important thing that can boost your mortgage approval chances. A good credit score shows that you are able to responsible handle your credit and pay your bills on time, something that is essential to someone would would be lending you the money to make one of the most important purchases of your life. If your credit score shows a string of late payments, a ton of debt, or a ton of new credit inquiries, that will likely be a sign to your lender that you may not be a good candidate for a loan.
Finally, have little debt is also helpful when it comes to boosting your chances at mortgage approval. When it comes to getting approved for a mortgage, a lender will consider your monthly income and how much of your debt takes out of that income in addition to your potential mortgage payment. Depending on the type of loan, there are different debt-to-income ratios that are considered acceptable.