5 Tips for Increasing Your Chances of Getting a Home Loan in Colorado
Obtaining a home loan isn’t as care-free today as it was just 6 short years ago. But it is possible and there are ways of increasing your chances. Here are five tips that will put you in a good financial spot light and improve your chances of obtaining a home loan in Colorado.
You would be surprised what job stability can do for your home loan. Being employed with the same company for at least two years can go a long ways toward getting approved. If you can show regular increases in your income through job performance raises and cost of living increases, all the better.
Current savings account statements, 401K documents, and cancelled checks go a long way in helping you qualify. Be ready to provide documents that seem illogical and redundant. The Fannie Mae seller guide is 1310 pages of rules that pertain to your home loan. And the rules are changing all the time.
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It is helpful to have financial resources to show lenders, in case anything were to arise that left you unable to pay your mortgage. This can include retirement accounts, life insurance policies that have cash out options or just plain cash on hand.
The more money that you have upfront for a down payment, the faster that you will find a lender ready to loan the rest. By showing the lender that you can pay for a portion of the home upfront, you are proving that you can be responsible with your resources: IE: Saving.
In the months leading up to your home loan application, ensure that you are being consistent. Lenders will likely look at your banking accounts and gauge your spending habits. If you are prone to spontaneous shopping sprees, curb them now. That is not something you want a potential lender to see. A final tip to make it easier to obtain a home loan is to stay within your means. There are many home loan calculators available that allow you to input your income, rates and insurance and it will tell you not only what your estimated monthly mortgage rate will be, but also how much home you can afford. By seeking a home loan that falls within your income, you can be assured that a lender will be more likely to pick up your loan then if you are seeking homes outside your budget. Home loans can be difficult to obtain but with the right documentation, a little hard work and a bucket load of patience, you can find the loan you want and start searching for your dream home. Contact Colorado Mortgage Group today to qualify for and find a loan that works for you.