Jason Bonariggo Explains How to Boost Your Chances of Landing a Mortgage

Aug. 6, 2013 - PRLog -- Home ownership has always been a large stepping stone on the pathway to the American Dream. Lately, though, with lenders tightening their requirements for obtaining a home mortgage loan, it can seem like that dream is just out of reach. Fortunately, with a little diligence and a measure of patience, home ownership can be an attainable goal for just about anyone willing to prove financial responsibility and put in the effort. Read on for a few tips on how to increase the odds that you will secure a home mortgage when you go to apply:

Bolster your credit!

The importance of good credit cannot be emphasized enough when obtaining any kind of a loan. To check your credit standing, contact the three major credit bureaus – TransUnion, Equifax, and Experian – and get a copy of your credit report. You should be able to request this report yearly at no charge.

Once you have the report in hand, make sure there are no discrepancies among the assessments of the three agencies, and go over the report with a fine-toothed comb to make sure that there aren’t any credit blemishes. Dispute anything that doesn’t look right to you and take steps to remedy anything outstanding.

But what do I do if my credit score is not favorable?

To shore up your credit standing in the hope of obtaining a favorable interest rate on your mortgage, you can take out a credit card, use it regularly, and pay off the balance each month. It may take some time, but your diligence will be worth it in the long run. In the meantime, make sure to make all of your payments on time. 

Pay down your debt.

Lenders are more likely to look favorably upon borrowers without large amounts of debt – particularly discretionary debt. If you have a car loan or student loans to pay off, you aren’t going to stand out too far from the crowd. But if you’re paying off a luxury purchase or two, lenders may be concerned that you will struggle to take on a monthly mortgage payment. Carrying a large balance on your credit card is especially unattractive to lenders.

What do I do if I have large amounts of credit card debt?


Quite simply, try to pay off your balances. You might have to tighten your belt for a while, but creating a tight budget is the best way to reign in your spending and have more money available to reduce the size of your loans. Another option is to consolidate your loans so you have fewer monthly payments on your financial record.

Prove your responsibility.

When you apply for a mortgage, it is important to show your lender that you are responsible about your finances and therefore a good risk for a loan. Stable employment or income is an important factor that lenders will take into account when they are assessing your finances. If you can show regular employment and a steady income, you will be considered a better candidate for a loan at a favorable rate.

What if I’ve recently changed jobs?

Changing jobs doesn’t necessarily take you out of the loan game; after all, many homeowners must purchase a new home when taking on a position with a company in a different city. What’s more important is that there are no unexplained gaps in your employment history – particularly if you haven’t been able to make payments on your rent or a prior mortgage. Keep in mind also that although it can be a slow climb out of an unfavorable financial situation in due to unemployment, there are still options for obtaining a home loan in the future. You may just have to be a little more patient.

   All in all, obtaining a mortgage is attainable if you can prove financial diligence coupled with a dose of patience. An experienced loan officer can be your guide to the types of loans that best suit your lifestyle, earnings, credit, and savings. If you are committed to obtaining a mortgage, chances are that you can make that dream of home ownership.

Contact: Jillian Gregoriou

Email: Jillian@exposeyourselfpr.com

Tel: 617-797-9869