The demand for houses in St George Utah is increasing annually. For the majority of new homebuyers, a mortgage is their financing option.
So, how do you ensure that your mortgage application does not end up rejected?
We approached leading home mortgage lenders to share their top secrets.
In this post, we feature tips as explained by the top mortgage lenders. In the end, you will learn how to ensure faster mortgage approval when buying new homes St George Utah.
1. Make sure you can afford repaying the amount you intend to borrow
This seems obvious!
However, did you know that what you deem affordable is not necessarily, what your mortgage lender finds affordable?
If you have lived in a rental property in the past, you know how it feels coughing up a huge percentage of your income to pay rent every month.
The threat of rising rents and other housing costs can really affect your finances. The same applies when you are repaying a mortgage.
If you end up borrowing a mortgage that you cannot afford to repay, you will find it hard living in that property.
The mortgage lenders will consider a number of items to determine the ability to repay a loan.
Therefore, while underwriting a mortgage, they may choose to lower the amount if they deem you cannot afford to repay.
2. Avoid taking additional debts if you plan to apply for a mortgage soon
So, you came across St. George houses for sale, and one of the properties really caught your attention.
Finally, you have decided to apply for a mortgage to secure the property.
Unfortunately, the bank does not approve the mortgage application, and the reason is “Too much Debt”.
It then dawns on you that three months ago you borrowed to upgrade your car. Regrets… right?
If you are planning to purchase a property, make sure that your debt to income is positive and attractive to mortgage lenders.
This means that you repay the existing debts and avoid applying for additional debts. If you do this, you can comfortably go ahead and look for new homes St George Utah because the mortgage lenders will be attracted based on your ability to repay.
3. Keep your credit score at all time high
I know this can be tough.
However, mortgage lenders will consider your credit score to determine crucial things like suitable interest rates.
Monitor your credit to avoid being listed as a defaulter. This will affect your credit eligibility in a negative way.
Mortgage lenders advice that people should check their credit score regularly and improve the credit score. This is by paying outstanding debts and settling unpaid bills in good timings.
4. Avoid searching for Homes on sale before pre approval
Searching for homes for sale in Southern Utah without a mortgage pre approval letter can be a huge disappointment.
Consider that home sellers will only trust home buyers who have the pre approval letter already.
This crucial documentation notifies the home sellers that you qualify for certain amount, so you can afford to pay for the house.
5. Make sure you shop around to find a suitable mortgage product
You never know how much you can save in mortgage costs if you have not considered what other lenders charge.
Apply for mortgage pre approval from different mortgage lenders. This does not affect your mortgage eligibility in any way. While doing so, check and compare the:
- Interest rates
- Additional mortgage closing costs
- Lender fees
- Different loan products and the eligibility criteria
6. Work with an experienced real estate agent
Involve an experienced real estate agent in your search for most affordable new homes St. George Utah. This saves your time, making the experience much easier. Consider that experienced real estate agents are connected to mortgage lenders and can direct you to the most suitable mortgage lender.
Moreover, the real estate agent will help you through:
- Finding a suitable house depending on your “must haves” list
- Drafting the purchase agreement
- Real estate agent is your closing agent
- Drafting the offer
- Finding suitable mortgage lender and negotiating for best rates
Therefore, a real estate agent is critical player in the home purchase process.
7. Changing jobs may complicate the mortgage approval
While changing jobs is considered a career move, when applying for a mortgage it will affect the approval process.
Some mortgage lenders require that you show proof of stable income, and if employed, job security is critical. If you show an interim employment letter, this halts your mortgage application.
8. Never skip the home inspection
Skipping home inspection is the worst mistake homebuyers can make.
After looking at several houses in St George Utah and determining the one you want to purchase, it is now time to have the property inspected. This will avoid incurring repair costs and it is a basis for negotiations in case some touches will be necessary before moving in.
When buying a house, remember that a small mistake could mean lifetime regrets. The secrets here will help you avoid mistakes that can cost your lifetime savings.