Buying a home is an exciting prospect, but applying for a mortgage is often looked at with trepidation. There are steps you can take to improve your chance of approval, however. Taking a proactive approach is key in this case, especially if it's your first time applying for a home loan. The following are a few tips that can help you during the approval process.
Money Crashers urges applicants to know their credit score before applying. Lenders will look at this score, among many other factors, when determining whether to approve you and for how much. The lower your score, the less likely it is you'll be approved. A lower score will also increase the interest you're obligated to pay on the loan. This will add to the costs, which may not be feasible for some homeowners. When checking your score, make sure everything seems accurate. It's not uncommon for erroneous information to be present on a credit report, which must be remedied.