How to improve your chances of getting a Phoenix mortgage
August 23, 2021 at 7:00 AM
How to improve your chances of getting a Phoenix mortgage

Several factors will be considered when you’re applying for a Phoenix mortgage. Your employment status and history, income level, and credit score. No matter how stable of a job you have, applying for a mortgage can be a stressful experience because a bank can deny you for whatever reason they see fit. With help from Atlas Crown Mortgage, you can be prepared for applying for and getting a mortgage for the next home you buy.

Improve your credit

One of the most important things that you can do to prepare for getting a mortgage is to improve your credit score. While this isn’t always a quick process, you can plan by developing good habits like paying your bills on time and limiting your debt. These will help your credit over time so you’re ready to apply for a mortgage when the time comes.

Check your credit report for mistakes

You can run a credit report to see what shows up for potential lenders to see. Look through it thoroughly to identify any mistakes. These can be credit cards or loans you’ve paid off that still show up or delinquencies that haven’t been removed that should have been. Furthermore, this is one way that you can verify that your identity hasn’t been stolen and someone is out opening credit cards in your name.

Pay down debt

Your debt-to-income ratio will play a significant role in your ability to get approved for a loan. If you have a considerable amount of debt that’s weighing heavily on your income, a lender might determine that they’re not willing to take on the risk that comes with loaning you money. Paying down debt demonstrates to lenders that you’ve not only established the importance of paying back your debts, but it naturally creates more room in your budget for the monthly payment that comes with their loan.

Save for a down payment

A down payment is a great way to show a mortgage company that you’re fully invested in the buying process. By putting some of your own money in the pot, a lender can see that you’re serious about the purchase. Additionally, the bigger the down payment you can make on a home, the smaller the loan will be that you have to apply for. This will increase your chances of getting a Phoenix mortgage as your home loan could be reduced from $350,000 to under $300,000. This is appealing to lenders and will help your chances of being approved.

Hold off on credit cards

The moment you start thinking about buying a home is when you should put a halt to getting new credit cards. This includes everything from the major companies like Visa, Mastercard, and so forth to your favorite clothing store in the mall. When you open new credit cards you’re demonstrating to a lender that you’re willing to continue taking on more debt. While this is exactly what you’ll be doing with a mortgage, you should demonstrate that your priorities lie with the mortgage. Your mortgage is likely to be the largest loan you ever take out, so you should demonstrate to the lender that you take it seriously.

Contact us to get started

Whether you’re looking for a conventional loan to buy a starter home, qualify for VA loans, or need a jumbo loan to buy the house of your dreams, we can help at Atlas Crown Mortgage. Our team is qualified in assisting our clients in applying for and securing a Phoenix mortgage so they can buy their next home. Give us a call at 480-470-8700 or send a message using our online contact form.

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