How Mortgage Applications Are Reviewed
Mortgage applications not only determine whether or not you get that house of your dreams, but what your payments and interest rate will be for the life of the loan. Your credit history will impact your chances of approval.
Here are some things to check into:
- Do you have a history of delinquency or default?
Missing a payment or two during a time of extreme financial difficulty is not the end of the world, but if it happens more often than that, expect it to impact your credit. - Do you live a high-debt lifestyle?If you are using the most of your available credit or carry a lot of debt relative to your income, it can hurt you.
- How long is your credit history If you’ve paid your bills on time for a short time, you won’t be considered reliable. A lengthy history of good credit is important
- How often do you apply for credit?Opening many credit accounts, especially over a short period of time, is a sign for future trouble. The borrower could be juggling high-debt from one account to another or be a last attempt to spending before filing for bankrupty.