It can be difficult to qualify for a mortgage, even if you have a good credit record and steady income.
Sometimes borrowers are turned down for a mortgage because of things that are out of their control, which could be overcome by using an experienced mortgage loan originator.
If you’ve been turned down for a mortgage, one of the best things you can do is use a mortgage broker to act as an intermediary between you and the lending institution.
Besides using a mortgage broker, here are some tips that might help you qualify for a mortgage.
#1 Improve Your Credit Score
When you apply for a home loan, the lender looks at your credit history and credit score. Your credit history contains a long list of money you borrowed in the past, but it also shows your total debts, medical bills, and any foreclosures or bankruptcies you may have experienced.
If a lender denies you for a mortgage, it may be because your credit score was too low.
You can typically raise your credit score by paying off more debt, eliminating bad debts, or removing any mistakes from your credit report.
#2 Apply with a Cosigner
Applying for a loan with a cosigner is another option. Your cosigner agrees to pay back the loan if you default. And the loan will appear on the cosigner’s credit report, which means you need to find someone willing to take a chance on you.
Since the lender will put more weight on the credit score of your cosigner than on your own credit report, so find a cosigner who has a very good credit score.
#3 Choose a Less Expensive Home
If you have been rejected for a mortgage on a more expensive home, you might qualify for a less expensive home.
If you are working with a mortgage broker like Marimark Mortgage, you should be pre-qualified for a home as the first step in the home buying process, which will let you know how much you can afford to spend on a home.