Experts recommend that you don’t spend more than a third of your monthly income repaying your mortgage. Doing so puts you at the risk of defaulting while lowering the quality of life.
Unfortunately, over 39 million American households did hear this clarion call, and they struggle to afford their homes. Don’t let this happen to you. With a bit of effort and preparation, you can stay below the one-third rule.
To increase your chance of qualifying for an affordable Salt Lake City home loan, you need to take few proactive steps suggested by Altius Mortgage Group.
1. Carry your weight
In as much as you’re looking to secure a loan to buy a house, lenders want you to carry some weight as well. Aim to raise at least 20 percent of the total cost of the house as down payment. Doing so bears considerable advantages both in the long and short-term.
In the short term, it increases your chances of securing loan approval. In the long term, it brings the total cost of the house down. The deposit entitles you to a low-interest rate on the mortgage, which translates into lower payments over the life of the loan.
2. Avoid misinformation
With a lifespan that ranges from 5 to 30 years or more, a mortgage is a long-term commitment. The last thing anyone would wish is to get into such an arrangement based on half-truths and white lies. To head off such instances, lenders tend to take a fine-tooth comb to your background.
Even the slightest mistake on your application can ruin your chances of getting approval. In some instances, you might pass the pre-qualification stage but get a rejection when you’re just about to seal the deal. Make sure that every detail in your application is true to avoid complications later.
Lenders often get thousands of loan applications from people looking to buy a home. You stand a better chance of success if you make it easy for them to process your application.