How to Get Approved for a Mortgage
How to Get Approved for a Mortgage
Part I: How to Get Approved for a Mortgage – Credit Score
Get Educated on Your Credit Score
In this article, The Lucky Entrepreneur will provide step-by-step guidance on how to get approved for a mortgage. First, the most important factor that will impact your qualification for a mortgage is your credit score. Let’s determine what factors contributes to your credit scores:
- Credit Balance (30% impact on your credit score)
- Payment History (35% impact on your credit score)
- Length of Credit History (15% impact on your credit score)
- Credit Mix (10% impact on your credit score)
- New Credit (10% impact on your credit score)
How to boost your credit score
- Reduce debt-to-income ratio
- Fix credit errors on your credit report
- Slow down borrowing (applying for new credit cards or new loans)
Project your future finance by understanding your spending behavior
- Get help from online calculator by banks or some finance blog and website
I’ve included the list of online mortgage calculator here.
- Sign up for an online account to monitor your spending
I’d recommend using some apps like credit karma or credit sesame to monitor your credit.
How a FICO score breaks down by myFICO.com
References: What’s in My FICO Scores. Source from myFICO.com
