Wisconsin Mortgage Corporation Recommends Four Tips to Help You Get PreApproved For a Loan

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Before you start your home search, sit down with a Mortgage Officer with Wisconsin Mortgage Corporation, to see how much home you qualify for. Here are four tips, to help you shop with confidence:

  1. Improve your credit score. While different lenders have different requirements, you still need a good credit score to pre-qualify for a loan. If your score isn’t high enough, there are a few steps you can take to improve your ranking.
    1. Order your credit reports. Order a copy of your credit history from Experian, TransUnion and Equifax. Check your reports for errors and seek to get them fixed.
    2. Pay down debt. Debt accounts for 30% of your FICO® credit score. Reducing your debts will help raise your score.
    3. Pay ALL your bills on time, including credit cards, car loans, utilities, etc.
    4. Work with your loan officer on how to make repairs over a period of time.
  2. Stay in one job. Lenders want to see that you’ve been working steadily in the same line of work for two or more years at the same location before you can pre-qualify for a loan. This shows stability and reassures them you will continue to pay your mortgage. If you haven’t been working that long, aim to stay with your current employer (or in your career field) until you reach the two-year mark. Changing career paths can hurt your chances to pre-qualify for a loan.
  3. Maximize income. If you aren’t making as much money as you need to pre-qualify for a loan, you have a few options:
    1. Find a co-borrower with good credit. Their income added to yours may make the loan possible.
    2. Look for a lower-priced home that you can better afford.
  4. Build financial assets. Lenders like to see that you have contingency money in your bank account — about two to three months of mortgage payments. Many lenders require proof that your contingency funds have been in your account for at least 60 days before you can pre-qualify for a loan. If you don’t have enough cash in your account, you either receive a gift from a family member or start saving your own cash. Your Loan Officer will advise you to make sure your funds meet today’s requirements.

These four tips can assist you in reaching your goals when it comes to securing the mortgage necessary to buy your dream home.

Contact a Loan Office at Wisconsin Mortgage Corporation today.



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