Lending is tight, and with the way the market is moving, it may be getting even tighter. But that doesn't mean your dreams of that three bedroom colonial should be dashed to pieces. According to Michael Litzner
of Century 21 American Homes
, it just means you need to impress your lender. Below are Litzner
's top tips:
Maintain job security. "If possible, you should stay at your current job while building up your credit and zeroing in on that mortgage," says Litzner
. Your lender will want to analyze your work history, and make sure you are reliable and have a steady stream of income. If you know you need to switch jobs soon, put off your home purchase until you are securely in your new position.
Fluff your credit. Your credit is key for securing a mortgage. If yours isn't up to snuff, spend a year or so working on it before talking to a lender. How can you work on your credit? Pay down any credit card balances and stay on top of your bills. "You should also check your ratio of credit available to credit used," recommends Litzner
Trim your spending habits. "You are trying to prove to your lender you can manage your finances and debt," says Litzner
. "Blowing a huge chunk of your salary on a new car or that stunning living room set will raise a few eyebrows." Avoid excessive credit card purchases while gearing up for a mortgage application.
Save. This goes hand in hand with trimming your spending habits. Saving for your down payment will be very helpful when it comes to applying for a mortgage. Aim for 20 percent of the amount of home you can afford. "A large down payment will prove to lenders that you're serious, that you're a good saver, not to mention that it will give you immediate equity and reduce your monthly payments from the get-go," explains Litzner
While securing a mortgage is a tricky process, it's not impossible-and impressing your lender is only going to help.
For more information on impressing your lender, please contact Century 21 American Homes at 1-800-270-6318.
Century 21 American Homes is one of the fastest growing real estate brokerages serving Long Island, Queens and Brooklyn. To find out more about an exciting career in real estate contact us at email@example.com.