Home Loan Homework: Before You Apply

With the fate of a future dwelling on the line, making sure that you come out the winner when you apply for a home loan is crucial. In order to ensure your success at securing a home loan, use the following tips to improve your chances before you even apply:

1. Obtain a current copy of your credit report. When applying for a home loan, any decisions regarding your terms will be based on the available data. Obtaining a current copy of your credit report gives you a chance to correct information that might leave a negative impression with the lender.
2. Pay back any outstanding debts. Armed with your credit report, you should be able to find any outstanding debts that weigh down your credit score. Additionally, if you find any errors in your credit report, clear them up with the credit reporting agency to further raise your score.
3. Avoid borrowing any money or buying big-ticket items at least several months in advance of applying for your home loan. Treat the home loan as first priority while you haven’t yet closed the deal for it.
4. Make sure that long-term employment is included in your credit file. This should show the lender that you’re financially stable and will be able to pay your dues on time.