Article provided by: Supreme Lending Nashville
Want a Nashville home loan to help you secure the house you’ve always wanted? At Supreme Lending, we pride ourselves in customer service and our clients always come first. Our team of experienced staff will assist and guide you every step of the way in the home loan application process. Buying a house is a huge commitment financially, and that's why we'll do everything we can to ensure you get the best deals.
What Key Factors Should You Consider When Applying for A Home Loan?
The factors you need to consider when applying for a mortgage include:
- Paying Bills on Time
One major concern of lenders is whether you’ll be able to make your mortgage payments on time. As such, the largest portion of your credit score goes to the history of timely bill payments. A single late payment can bring down your credit score by almost 100 points or even more.
- Exercise Caution When Applying for, Using, and Canceling Credit Cards
The amount of credit you use accounts for 30% of your credit score. So, avoid excessive activity on your cards in the months leading to your mortgage application. Don’t apply for new cards during the period you plan to apply for a home loan. At the same time, it’s also not advisable to cancel your credit cards. That also applies to cards you don’t use.
- Pay Down Your Large Credit Card Balances
Try to ensure your card balances are below 30-50% of the limits. If any of your credit cards is above this, pay down the amount to get your balance to below 30% or if possible, 50%.
Which Tips Will You Get Approved for A Home Loan?
Knowing the best ways of securing a home loan will help you get approved for a mortgage.
- Save Cash
Mortgage loan requirements change often. So, if you’re preparing to apply for a home loan, be ready to part with some money. Walking through a lender’s door with no cash whatsoever is one way of getting your mortgage rejected.
The minimum amount of down payment you can make depends on several factors such as the lender and type of loan. Each lender provides their own criteria; however, on average, you can expect to make at least a down payment of 3.5%. If possible, make a higher down payment of say 20% which will not only alleviate your private mortgage insurance (PMI), but it will also bring down your home loan balance. Getting rid of private mortgage payments allows you to pay more affordable or lower home loan payments.
That said, making a down payment isn’t the only cost you’ll incur, your mortgage also includes home inspections, title searches, application fees, closing costs, credit report fees, home appraisals, among other expenses.
- Maintain Your Job
Having the same employer is crucial when it comes to the house buying process. Changes to your income status or employment may considerably delay or even stop the mortgage process.
As your Nashville home loan lender, we're here to ensure you get the help you need with your mortgage. If you have any queries, questions, or you'd like to get started on your home loan application, don't hesitate to call us at 615.479.4428.
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