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:

1. Credit Balance (30% impact on your credit score)
2. Payment History (35% impact on your credit score)
3. Length of Credit History (15% impact on your credit score)
4. Credit Mix (10% impact on your credit score)
5. New Credit (10% impact on your credit score)

How to boost your credit score

1. Reduce debt-to-income ratio
2. Fix credit errors on your credit report
3. Slow down borrowing (applying for new credit cards or new loans)

Project your future finance by understanding your spending behavior

1. Get help from online calculator by banks or some finance blog and website

I’ve included the list of online mortgage calculator here.

2. 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