Thursday, July 30, 2015

Vahe Hayrapetian Advises on Things to Do when Applying for Mortgage

It’s easy to be overwhelmed about the information made available about buying a house, most especially on applying for a mortgage. In fact, over 76 percent of first-time homebuyers feel overwhelmed by the enormous amount of information that they comes across when applying for a mortgage and buying a home.

As helpful as all that information will be, nothing beats talking to mortgage brokers like Vahe Hayrapetian. With his years of experience, he can help you understand everything you need to know about getting your mortgage application approved through these simple steps:

Have a Consistent Income

You’ll need to show proof that you’re receiving consistent income for at least the past 12 months, and even 24 months, if you can. Aim for a total debt-to-income ratio of less than 35 percent and avoid frequently switching jobs within one year when applying for a mortgage.

Take Care of your Credit

To achieve a debt-to-income ratio of less than 35 percent, start relying less on your credit card and don't apply for a new credit during the time you’re applying for a mortgage. Lenders will usually pull a credit update within ten days of closing the loan to confirm that you are indeed spending your money as you say you are.

While your application is underway, avoid making large purchases on your credit card or any other abnormal financial activity that lenders can use to relinquish your approval. This is among the most common mistakes among first-time homebuyers, for their eagerness to get their own living space makes them spend tons on household amenities like furniture and kitchenware, which consequently spikes their debt-to-income ratio.

Be Aware of your Credit Score

Most of the time, a buyer’s credit score can either make or break their chances of getting approved for a mortgage. If possible, be updated with your credit score months, or even a year, before applying for a home loan to spare yourself from any unpleasant surprises.

It also helps to talk to mortgage brokers like Vahe Hayrapetian, who can tell you everything you’ll need to know and do if you want to get a better chance at getting your mortgage application approved and bring you a step closer to your dream home.

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