Want to apply for a mortgage but fears you might not qualify for the loan? Don’t worry -you’re not allowed. Many borrowers have the same kind of stress. How else can you buy a house if you can’t even qualify for a mortgage?
The good news is, we can now choose from the many mortgage programs available these days. Take Fha Loans Corpus Christi for example. These are easier to qualify, have lower fees, accepts lower credit score, and small down payment fees.
Wish you can nail your FHA mortgage application? Here’s how you can achieve this.
Clean Up Your Credit History
If there’s one good way to increase your chances of getting an FHA mortgage approval, it would be by showing off how responsible you are as a borrower. One of the requirements when applying for a Fha Loans Corpus Christi is a good credit score and history. Both your credit history and score can affect your ability to qualify for loans, including mortgages.
Good Read: How to Fix a Bad Credit Report
If you have a credit score that is below the minimum requirement, which is between 500-580, work on improving it by paying your bills on time. Avoid missing debt payments and refrain from opening new credit accounts. As for your credit history, check it for errors and ask the credit bureaus to clean up the mistake.
Stay On The Same Company For At Least Two Years
Even average earners can now buy a house as long as they qualify for a mortgage. To be eligible for Fha Loans Corpus Christi or any mortgage program for that matter, prove that you have a stable income and employment history.
You will need to submit tax returns documents and proofs of income amounting to two years. Job hopping can lead to mortgage rejection. Why? Because this usually shows you don’t have a stable source of income.
Avoid Moving Often
Before applying for a mortgage, it would be best not to move houses too often. Staying in a single place for a long time shows stability, which is essential during the mortgage application. You can do this by committing to your rented property for at least one year. Also, have yourself registered on the electoral register for good measure.
Close Joint Financial Commitments
This is exceptionally important if you have a joint account with someone who has credit issues. They can weigh you down during your FHA mortgage application, and even cost you your chances of securing a mortgage. During application, let your lender know that you’re no longer associated with the person. Provide documentation supporting this. Doing so will help you maintain a good FOCI score while your partner tries to fix their credit issues.
Also Read: Pros and Cons of Joint Credit Cards
Save And Put Down More Down Payment
For FHA loans, the minimum down payment is 3.5%. However, this is dependent on many reasons. For example, you have a FICO score lower than 580. You can still qualify for a mortgage. However, you’ll need at least 10% down payment to compensate for your low FICO score. Putting a higher down payment helps you secure the loan and allows you to enjoy better loan rates and terms.