Here are four different tips to help you achieve that approval.
1. Problem – your income isn’t high enough to qualify for the loan you need.
Solution – ask someone who has enough disposable income if they will be your co-signer. When someone agrees to be your co-signer they are agreeing to guarantee the lender that your mortgage payments will be paid. It isn’t necessary for this person to be actually living with you or helping you repay the mortgage. Another benefit that a co-signer can provide you with is if your credit is less than perfect, their credit may compensate for it. Your AMP will be able to provide you with advice regarding this. It is advisable, however, to discuss the financial and legal obligations that your co-signer will take on prior to signing any loan documents.
2. Problem – the economy/market currently isn’t conducive to getting a loan.
Solution – wait it out. Of course, this might be easier said than done, but sometimes waiting has benefits. If your credit score needs improving, now would be the perfect time to work on it. You can also take this opportunity to increase your savings or reduce/pay off any debts. At the same time, the price of homes or even interest rates could drop. All in all this will improve your mortgage eligibility.
3. Problem – you can’t qualify for the amount of mortgage that you want.
Solution – be flexible and look at purchasing a property that is more within your financial reach. If you are in a situation where you can’t put off purchasing a home until a later date, switching the kind of home you are willing to purchase may make the difference. Instead of a house, look at a condo or townhouse. What about a smaller house or a different location? There are many different factors to consider. Making some changes now may assist you in purchasing the kind of property/area etc. you had originally wanted in the future.
4. Problem – you just don’t have enough funds.
Solution – find someone to purchase the property with you if you can’t qualify on your own. This is a major purchase for anyone – so it is important to find someone you trust and that you will be able to live with. This is different from a co-signer as the individual will actually be living with you and making mortgage payments with you.
These are just a few tips that can assist you in getting your mortgage application approved.