Lenders take many factors into consideration. These factors not only influence what type of loans borrower can qualify for, also what the terms of payments will be and how many years it can be paid off. Knowledge of these factors and preparation to improve them all can make a tremendous difference when applying for a loan, in order to qualify and expedite the approval and the proses for quick closing.
Some of the basic factors apply for just about any loan but are especially important if you are trying to get a mortgage, for which the main factor is good credit and off course sufficient equity to secure the loan and or proven viable potentials that pertain to security of the loan.
To find out how good is your credit in advance, you may obtain copies of all of your credit reports from the 3 major consumer reporting companies and check each one for errors.
It is possible they have errors that can be corrected in a short time in advance, and that helps boost your score. If you have credit cards, it is best to pay them off as well as any other outstanding bills.
Grater down payments are always helpful for positive reaction from the lenders. Even If your credit is great, having more equity may effect in lowering interest rate and of course lower the monthly payments or decrease the duration of the total loan.
Accuracy of your statements is a major factor in decision making of the underwriter of the loan. False declarations and discrepancy found in loan application is a good reason for mistrust and lack of confidence for borrower’s credentials.