Getting a mortgage in 2016 is quite a bit easier than it has been in years past.  However, there are still certain things that mortgage lenders are looking for  when you apply for a home loan.  Keep in mind that although your credit score is important, there are other factors that come into play when applying for a home loan. 

  • The first thing that mortgage lenders are going to want to know from you is if you are a good credit risk.  They are going to look at your FICO score but they are also going to look at how you pay your bills.  If you want to get a good interest rate on your mortgage then you will want to make sure and pay your bills on time every time.  Your debt to income ratio is also going to play a key factor in what kind of interest rate you get on your home loan.
  • Lenders are going to want to know if you will be able to handle your house payment once you get into your new home.  In order to find this out they are going to look closely at how much you and your spouse make on a weekly or monthly basis.  They will also, as I already mentioned, look closely at your debt to income ratio.  Lenders also want to know that you have a steady job and that you have been there for a number of years.   
  • Lenders do NOT want you to go out and purchase new things for your new house on your credit card right before you get your home loan approval.  Many folks mess up by doing this type of thing right before they get their approval only to be devastated to find out that because they ran up debt on a credit card they are no longer going to be considered for the loan.  Play it safe and only make your new purchases for your new home once you are safely in your new home.   A good time to have a little extra money to purchase new items might be during the first month you are in your new home because many times your payments won’t start until you have been in your home for one month. 

These are just a few ideas to help you get the most out of your home mortgage.  Remember to shop around for the best match when it comes to a lender.  Although most lenders are good at what they do, they are not all created equal.  Do your best to work hard, pay your bills on time and not use your credit cards for large purchases and you will be well on your way to a home loan approval. 

Courtesy of Montgomery AL Real Estate Expert Sandra Nickel.