A mortgage approval process sounds like a simple thing -- and it basically is -- but it can be thrown off track by the smallest of problems. A smooth application and approval is possible, but you need to prepare first so that, if the loan officer brings up any questions, you can settle the matters to the officer's satisfaction.
Pay Attention to the Basics
Don't ignore the basics of getting a mortgage. Gather a down payment that's as big as possible, clean up your credit and raise your score as high as possible, and show that your income and budget allow for a decent house payment. Things like raising your credit score can take a while, so start early, and you'll eventually see your situation improve.
Ensure that you have a good track record of payments; if you're looking for a house because of spiraling rental costs and have been having trouble paying those, alert your real estate agent and mortgage officer at the beginning of the process and let them know why you're trying to buy. You shouldn't jump in and talk about how late you might have been, but let them know that you need to get out of the rental market because of soaring rent, and you hope to find a mortgage that gives you some breathing room. Show them your budget to back up your claim that you can pay X amount for a mortgage. You might not get the best terms, but over the past couple of decades, the idea of buying in order to escape massive rent increases has become rather common.
Discuss Self-Employment Requirements Early On
If you run your own business, find out what you'll need to prove your income level at the start of the process. And this is important: Make sure the mortgage officer understands that you run your own business. There are a few out there who don't understand self-employment and still insist on talking to your "supervisor." Make it clear that you are the owner and supervisor, and provide tax returns for the past few years to show your income.
Stabilize Your Situation
Before you apply, ensure that your employment is stable (or is as stable as can be if you run your own business) and that you are planning to be in the same area for at least a few years. Make your life look as stable as possible so that the mortgage officer knows that you will be able to keep making payments and will not be at risk of cutting and running.
It is possible to get a mortgage with little trouble, but you're better off being prepared first. Show the mortgage loan officer that you will be a dependable borrower. Get everything in order as soon as you can. Go to website to learn more.