One of the main criteria your lenders would check to gauge whether your application meets their requirements is your credit score. As a borrower, what you can do first is to check your credit score yourself. You need to make sure that your credit report is accurate and that you have your desired score result.

When you see that there are irregularities on your credit report, you need to fix any inaccuracies as soon as you discover them. When you find out any potential fraud accounts under your name, you need to have it investigated.

If your debt-to-credit ratio is too high, then you need to observe how your score changes and what affects it, for you to adjust accordingly. When all these issues arise during your mortgage application, it would only cause you a delay or potential disapproval, so if you can address them sooner, then consider doing so.

1. 2. Research and Understand Before You Commit

Besides looking for the perfect home for you, you should also do your research on finding the best loan setup. There are many existing brokers and different rate setups. As such, before you sign up on any loans, you need to make sure that you completely understand everything. You must remember that you need to deal with your mortgage for several years, which is why you must ensure that it’s an agreement you can handle for its entire duration.

1. 3. Make a Realistic Financial Assessment

There is nothing wrong with aspiring for a great home. Many will say that having a home in the US is a tough dream to have, but that is what mortgage loan can help you with. However, as mentioned earlier, a mortgage loan is the kind of loan that you need to manage for a long time, so make sure you choose a realistic setup. Start with computing how much you can commit and make your home and loan search accordingly.

Remember that the higher the down payment you commit, the lesser the value you need to pay for each month. Consider it in your computation, as this can greatly affect your paying capabilities in the long run!

1. 4. Study How the Lending System Works

You also need to understand how lenders operate. To put it simply, the higher your credit score, the greater your chances of getting the loan amount and rate you need. The more you understand how the system works, the better your opportunity to prepare to get them.

Aside from their loan approval system, you should also check how their workflow is with actual clients. For example, have a look if they implement a prepayment penalty. Some lenders hold a fine for those who will pay off their terms faster than the agreed timing. If you are the type of person who wants to finish off their mortgage quickly, this is a crucial thing to consider checking.

1. 5. Choose Your Kind of Setup

Once you find the types of financing available, assess which is the best setup for you. If you think that mortgage rates can still temper down as time passes—and you want that flexibility—an adjustable-rate mortgage would be a good setup. If you want security when it comes to payments or you want to make sure that your remittance value does not change over time, then fixed mortgage setups are what’s best for you.

HI Velocity Mortgage is Your O’ahu Mortgage Broker

Buying a home is one big, life-changing decision, and it will not always be easy for everyone. Preparation is necessary to make sure you would get a mortgage loan that you can handle. In case you found your application disproved, do not despair—you can always prepare and try again. Remember that your financial circumstances can continually improve over time, for as long as you keep a cool head and work towards it.

One way to avoid any other inconveniences is to find O'ahu mortgage brokers that can help you find the best and simplest mortgage solution according to your budget and needs. Call us today at (808) 727-1055 and see how we can help you at HI Velocity Mortgage.