Getting a mortgage. If you’re like most people buying a home in Las Vegas, you’re going to need a mortgage loan – but people are disapproved every day. Check out the five things that can ruin your chances of getting a mortgage loan here.
5 Things That Can Ruin Your Chances of Getting a Mortgage
Getting a mortgage. For the vast majority of people, buying a home in Las Vegas hinges on one very important thing: getting a mortgage. Do you know your chances of getting a mortgage? If you can’t get a mortgage, there’s a good chance that you can’t buy a home. So what can cause a lender to turn you down? These five things:
- Not having an established credit history
- Carrying too much debt
- Having a poor credit score
- Quitting your job (or even changing jobs)
- Making a big purchase right before you sign the dotted line
Scroll down for a closer look at each.
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Getting a Mortgage-Crusher #1: Not Having an Established Credit History
First, if you don’t have a credit history, it’s going to be very difficult to get approved for a mortgage. Lenders like to see that you have a history of borrowing money and repaying it on time. Therefore, if you don’t have any credit at all, they may be reluctant to lend to you.
There are a few things you can do to try to establish credit if you don’t have any:
- First, get a secured credit card. This is a credit card that is backed by a deposit you make. For example, if you put down a $500 deposit, you may be able to get a credit limit of $500.
- Next, become an authorized user on someone else’s credit card. This means that you can use their credit card but they are responsible for the bill.
- Finally, get a cosigner. This is someone who agrees to sign the loan with you and be responsible for the payments if you can’t make them.
Related: Want to know the secret for finding the perfect condo?
Getting a Mortgage-Crusher #2: Carrying Too Much Debt
Next, if you have a lot of debt, it’s going to be difficult to get approved for a mortgage. Lenders want to see that you can handle your debts and they don’t want to lend you more money than you can afford to repay.
There are a few things you can do to try to reduce your debt:
- First, make a budget and stick to it. This will help you see where your money is going and where you can cut back.
- Then, make more than the minimum payment on your debts. This will help you pay them off faster and save money on interest.
- Next. consolidate your debts into one loan. This can help you get a lower interest rate and make it easier to manage your payments.
Mortgage-Crusher #3: Poor Credit Score
Next, if you have a poor credit score, it’s going to be difficult to get approved for a mortgage. Lenders want to see that you have a good history of borrowing and repaying money on time. Therefore, if you have missed payments or defaulted on loans in the past, it’s going to be hard to get approved.
There are a few things you can do to try to improve your credit score:
- First, make all of your payments on time. This includes your mortgage, credit card, and other debts.
- Then, keep your credit card balances low. This shows that you can manage your debt and don’t borrowing more than you can afford to repay.
- Next, check your credit report for errors. Then, if there are any mistakes, dispute them with the credit bureau.
- Finally, pay off your debts. This will help improve your credit score and show that you are responsible with borrowing money.
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Mortgage-Crusher #4: Quitting Your Job (or Even Changing Jobs)
If you quit your job or change jobs right before you apply for a mortgage, it’s going to be difficult to get approved. Lenders want to see that you have a stable job and income before they lend you money. They may be concerned that you will not be able to make your payments if you don’t have a steady job.
If you are thinking about quitting your job or changing jobs, it’s important to talk to your lender first. They may be able to give you some advice on how to proceed so that you don’t ruin your chances of getting approved.
Related: 7 hot tips to help you stage your master bathroom to sell
Mortgage-Crusher #5: Making a Big Purchase Right Before You Sign the Dotted Line
If you make a big purchase right before you apply for a mortgage, it’s going to be difficult to get approved. Lenders want to see that you have a stable income and they don’t want to lend you more money than you can afford to repay.
If you are thinking about making a big purchase, it’s important to talk to your lender first. They may be able to give you some advice on how to proceed so that you don’t ruin your chances of getting approved.
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