It’s always disappointing when a lender rejects your loan application. Here are 6 tips to get approval for a mortgage loan:
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​It is very important for the borrowers to pull their credit reports and order the credit score. Most of the borrowers do not request or try to know their credit scores thinking that they would have a high enough credit score to quality for the loan. Application will not be refused if credit score is high.
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Chances of mortgage loan approval will reduce if you go to your lender without cash. They often require a down payment after the approval of mortgage loan. Amount of down payment varies respect to several factors like type of lender and the loan. On average, around 3.5% down payment is required, but it can be more or less depending on the above mentioned factors. So, cash savings play an important role getting you over the board including the incurrence of some loan arrangement expenses like application fee, credit report fee etc.

​Lenders are pretty much keen to know that you’re doing a good job as a security that you would be able to pay all mortgage payments on time. Doing a low paying job or quitting it will greatly affect your chances of approving the mortgage loan request as your income status will change and the lender will not feel comfortable proceeding with the loan request.
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​Lenders are pretty much concerned about how you’re dealing with your debts. If you have a lot of debts running, chances of mortgage loan request approval will be low depending on the amounts of debts you’ve taken. Lenders often evaluate your debt to net income ratio before the approval of loan request. High debt to net income ratio means you have taken a lot of debt with respect the income you are earning, your chances for the approval will significantly reduce as lenders will not prefer you as you might not be able to pay off loan installments in future if the business faces problems. So simply, the less the level of debt, higher will be the chances for mortgage loan request approval.
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If you’re planning to bid on a house that you can’t afford or you can’t spend much or pay interest is truly unprofessionally and equivalent to wastage of time and money. It is important for you to choose houses that you love but can’t afford. The simplest process to get pre-approved is to contact a mortgage lender with the submission of all required information. It includes everything like the interest rate and the total amount you can afford for this mortgage. Your mortgage will immediately start once the lender accepts your bid.

​Lenders are not much interested how much you spend for the mortgage, they are rather interested in how much you can payback based on your credit and income reports. You can purchase a more expensive house than your budget but you need to be smart enough and keep all the expenses limited.

​1. Payment History 35% Impact
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items.

2. Outstanding Credit Balances 30% Impact
This factor marks the ratio between the outstanding balance and available credit. Ideally, you should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.

3. Credit History 15% Impact
This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.

4. Type of Credit 10% Impact
A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.
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5. Inquiries 10% Impact
This percentage of the credit score quantifies the number of inquiries made on a consumer credit within a six-month period. Each hard inquiry can cost from two to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten. In other words, 11 or more inquiries within a six-month period will have no further impact on the borrower credit score. Note that if you run a credit report on yourself, it will have no effect on your score.