Understanding How to Qualify for a Mortgage

Not many people are ready to pay for a home up front and in cash, which is why it helps to understand the process of qualifying for a home mortgage loan . You will want to have an accurate idea of your finances and your credit score; having preapproval can also be a huge bonus. Here is how to qualify for a mortgage.

Financial Picture

Before searching for a mortgage, make sure you have a crystal clear idea of what your finances are like. Go over your checking and savings accounts, and then look at your credit cards. A mortgage lender will be more inclined to offer better rates if you seem like you will be able to pay them off in a timely manner and without problems. Consider using mobile banking to look at current and past bank statements and get an idea of your financial trends.

Credit Score

Whenever interest rates are involved, your credit score probably will be as well. Fortunately there are many ways you can boost your score . Be sure to make all of your payments on time to show that you are reliable and financially trustworthy, and keep older credit cards open if you have paid them off; this offers some insight to your credit history. Take a look at your credit score and see what you can do to boost it up before applying for a mortgage. The higher your score is, the more favorable your chances are.

Preapproval

Those who have excellent credit scores and have demonstrated financial responsibility may be granted preapproval. This means that you will be guaranteed a certain amount of money from a lender, offering you valuable peace of mind during this process.

Do you still have questions about how to qualify for a mortgage? Contact GCS Credit Union or visit our website. We are a credit union in O’Fallon that offers online checking accounts, auto loans, and home mortgage loans. If you live in the area, feel free to give us a call at (618) 797-7993 or stop by and see us to learn more about our services.

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