Posted: Tuesday, May 22, 2018 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]
Category: Mortgage

Taking a mortgage loan can be exciting yet dreadful especially for first time home buyers in Minnesota, it is therefore recommended to take the important step armed with as much information as possible in order to reach the goal. Getting a mortgage has become increasingly difficult especially due to changes in lending rules, new housing bubbles and fears, tightened mortgage lender purse and other factors but it gets easier.

Here are some recommended tips to adopt in making your mortgage application look more attractive to mortgage lenders in Minnesota.

  1. Your Credit Score Speaks Volume

The first step to making your mortgage application look attractive is an attractive credit record. It is therefore important to have a look into your credit record which includes all credit cards, loans and overdrafts, phone and utility bills, and others over the past six years. Mortgage companies in Minnesota will have a look at your credit record and you want to make sure it is clean and attractive. As a rule of thumb, financial advisors advise against taking a mortgage loan with bad credit score as this affects the mortgage rates stipulated by the lender. Lenders will use your credit history to find out your repayment history and financial stability.

  1. Bad Credit Score? Improve It

Should you order for your credit history and find yourself displeased with your financial decision making skills, this is probably not the best time to take a mortgage loan but what you could do is to improve your credit history by paying debts on time, closing any inactive accounts and staying out of your overdraft. It is also recommended that you make sure to be unhinged from financial partners who may negatively impact your credit score and in the event you spot an error in your credit history, this is the best time to get a fix on it in preparation for your dream home.

  1. Register to vote

Quite a number of persons do not pay important attention to this as it sounds obvious and superficial. However, mortgage lenders in Minnesota pay attention to this little detail which may be the deal breaker in your application process. To avoid getting turned down by your mortgage lender who uses the voters roll to verify your identity, you should proceed to register at your local council as early as possible.

  1. Be Financially Prudent

Strict financial measures should be put in place when planning on applying for a mortgage loan. It is important to run your bank account prior to your mortgage application as though you already have a mortgage loan. For financial stability, financial advisors recommend at least three months practice time before turning in your mortgage application, this helps you cut back on all unnecessary spending and also improves your financial decision making skills. Frivolous activities such as betting, obtaining payday loans and others should strictly be abstained from.

  1. Stay in the same job

Most mortgage companies in Minnesota will feel more convenient awarding you a MN mortgage loan when your job history reflects stability. Taking a new job prior to your mortgage application may negatively impact your chances of getting a mortgage loan and as such it is important to stay with your current employer for a decent amount of time. Job changes could however be made after you’ve obtained your loan. However, in a case where you recently changed jobs, it is advisable to wait three to six months before turning in your application. 

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