How To Get Approved For A Home Loan

There are many people who dream of owning a house in Colorado and living in it for generations to come. However, not all these people can live the dream of becoming home owners only because they do not get approved for mortgage. It can be an overwhelming exercise to go through the entire process of house hunting in the state, falling in love with a property and then learning that you cannot buy it. To prevent such a situation, it is suggested that you get pre-approved for a loan before you start searching for a house. The following tips will help you get your home loan application approved.

Keep a Cosigner – If your incomes and savings are not adequate enough to get you qualified for the mortgage, you can find yourself a cosigner who has good amount of disposable income. A part of this income will be considered as contribution to your mortgage amount, irrespective of whether this person will live with you or help you pay your bills. A cosigner can also help you make up for your not-so-perfect credit. Basically, the cosigner is like a guarantee you are giving to the lender that the mortgage will be paid.

Be Patient – In certain situations, the economic conditions of the economy, the lending business or the housing market can make the banks or other lenders less generous with their schemes. If you are part of a phase where the overall climate is not so optimistic for buyers, then you ought to wait for a while. You can wait until conditions become better and the banks become accommodating. Till then, you can focus on increasing savings, boosting your credit score and decreasing the debt.

Do Not Opt for a Very Expensive Property – If you fail to qualify for the loan amount for an expensive property and cannot wait longer to buy a home, try to switch to a townhouse or condominium instead of the plush villa that you chose earlier. If you can’t compromise on the number of rooms or size of the property, you can even try looking for a house in a different part of Colorado. Move to a neighborhood where the cost of home ownership is less.

Ask your Lender to Make an Exception – Believe it or not, you can request your lender to send your application for a second opinion. The financial institution can send your rejected loan application for another review within the organization. But you must have a good reason and you need to draft a well-written letter in your defense. It should avoid sob stories and excuses to focus on facts. You must explain how a certain incident, like a charged-off account, prevented your loan from getting sanctioned.

Try a Different Lender – There are times when one lender will not approve of your loan application until another lender does. So if one bank rejects your plea, move on to the next one and keep checking out all your options. If all lenders are rejecting you on the same premise, then you may have a reason to worry as your financial standing could be a problem. In such a case, you can try fixing your problem.

Team Up With Your Spouse – Two incomes are always better than a single source of income. Thus, if you don’t qualify for a loan on your own, you can ask your spouse or another family member whom you trust to make the purchase with you. It is not enough to just show them as your partner for loan, they will also need to help with the payments and if they do that they would also be interested in sharing the new house with you.

To get approved by lenders, a potential investor must determine what the lenders are looking for in the applicants. Now that you know the above tips and tricks, here’s wishing you good luck with buying a new house!

Author bio: Devika Arora is a prolific writer who compiles relevant facts and analyzes the current state of affairs pertaining to real estate and its prospects. The above article talks about tips for getting your home loan approved.