Tips to Get Approved of Your Mortgage for the First Time

One good advantage that your credit score can give you is to qualify for a mortgage. Mortgage contracts are only for those who have their credit score in good figures. If your credit score is good—which is the first criterion—then you have to insure it keeps that way or even improving. To have a good mortgage offer and with a low interest rate, there must not be a scar on your credit report.

Besides keeping your credit score in good shape, mortgage applications require that you have impressive savings accounts and more than a satisfactory income each month.

To qualify for your mortgage at first attempt, consider the following tips:

Pay Increase vs. Bonus

Creditors will scrutinize every detail about your financial status and capacity from your credit report. This is the only basis they believe to determine whether you pose a risk to them. If you are, they will categorize you between high and low risk.

Your income and the probability of getting entangled in financial trouble some time in your future are very important to them. In addition to your income, they are also curious about how you earn such amount in a year. They want to know whether you are consistent—that is, if you have a stable or casual job.

If you earn flexible income on a yearly basis, they come up with an approximation on the minimum amount that you can earn. For this reason, it is wise to choose a raise in your salary over a bonus, if you are given with such options.

Career Background

Your employment is as telling as your income. Your credit report will contain information about your career. See to it that you do not have a long gap in your employment history. Gaps, even if they are short and few are considered a red flag by creditors. They take it against you. If you can go into slumping in your life, no matter how brief, they will think that you will likely to slip into that again and again in the future. And if you have a loan with them, payments to them will be affected.

The best thing that a creditor wants to see on your career history is the fact that you have been in the same company for quite some time such as perhaps, a minimum of two years. They want to know if you are stable financially. That you are regularly employed is what matters to them, even if you do not have employment gaps. A lot of reasons could come to mind if they see you hopping from one company to another within the same year or every year.

Unconventional Credit History

The truth is that if your credit history is good, you will not have inconvenience in applying for a mortgage. The interest rates charged against your loan may be lower as well. But, on the other hand, if you do have an issue or flaw in your credit history, you are not entirely doomed.

On time payments are important information for creditors. Your young age or lack of experience may work in your favour, if you have the three requirements: good savings account, on time payment of dues including utilities and rental fees, and frequent deposit transactions with your bank account.