5 Tips to Help You Get an Approval for a Mortgage
You must have seen many advertisements on different websites and on television of lending institutions and borrowers happily smiling after the loan has been approved. However, this is not the truth. If you have applied for a loan, you must have got a rude awakening when your application for a home loan was refused. With the current economic condition and the real estate market, this disapproval has now become a reality.
Given below are five tips that can help you obtain an approval for a mortgage –
- Arrange For A Guarantor – There are several lending institutions that allow you to have a guarantor. This guarantor comes into play when you don’t have adequate qualification for the loan. The guarantor should be someone who has a stable financial situation, has a good credit history, and understands all the clauses of the loan clearly. This person guarantees that there will be no default in the loan. He increases the lender’s assurance on you.
- Keep Enough Time At Hand And Wait – If you had applied for a loan in times when the economy wasn’t doing well, you surely didn’t receive good news from the lender. The lender usually becomes picky when the economy is not stable. It is, therefore, preferable if you keep enough time at hand when you apply for the loan. Apply for the loan and wait patiently for the economy to recover and for the lenders to relax. Use the time to improve your qualification and credit record.
- Build A Good Credit Record – A good credit record is the surest way to ensure the lender that you are not going to be a defaulter. The credit record shows all your loans, your credit card records and whether you have cleared all your debts. It shows if you have missed an instalment and how long you took to repay an amount. This record gives a clear idea to the lender of how you are going to handle the loan.
- Try Different Lenders – When you apply for loans, do not get disheartened when you are refused by one lending institution. There are several cases when one lender refuses while another lender approves the loan on different criteria. Try out different lenders. The trick is to not look desperate because when the lenders know that you desperately want a loan, they have a tendency to ask for higher interest rates.
- Team Up With Another Family Member – Home loans are of a higher amount and you have to pay a high interest. If you think that your income doesn’t entitle you to the loan, you can apply for the home loan with another family member. This way, the total income of both parties is added. There are several cases where both spouses jointly apply for icici home loans.
These five tips can guarantee you a happy outcome when you apply for your home loan. To get an approval you should know what the lenders want and give them exactly that.
Category: Loans
