Factors Affecting Your Mortgage Loan

There are numerous factors that might affect the approval of your mortgage loan from lenders.

1. Credit report
   The three major credit bureaus: Equifax, TransUnion and Experian provide your credit report. It is important to review these for errors because statistically, errors are present in 40 percent of credit reports. These errors can figure in your mortgage loan which would lead you to get higher interest rates or not get the mortgage loan at all.
   
   
2. Credit Cards
   Lenders become suspicious when you apply for new credit cards or close current accounts when you are applying for loan mortgage.
   
   
3. Outstanding Credit
   This figures much in the approval of your mortgage loan. Pay off all credits before applying for the loan.
   
   
4. Income
   A steady income will help you in securing a mortgage loan so it is recommended that you should avoid changing jobs or quitting your job before applying for a mortgage loan.
   
   
5. Available funds
   Make sure that you do not make purchases that could consume your available funds before buying a home. Aside from a down payment, you have to consider other expenses such as closing costs.
   
   
6. Down payment
   A bigger down payment assures you of lower interest rates on the mortgage loan.
   
   
7. Interest rate
   This will impact how much you will have to pay each month. It is best to consider "lock-in" fees to guarantee you still get the advantage should interest rates rise in the market. Remember that interest rates continuously change.
   
   
8. Price Range
   From your current financial assessment of your situation and by figuring out your debt-to-income ratio, determine the price of the home you can afford. A lender will not approve of a mortgage loan whose price you cannot meet.
   
   
9. Lender
   Know your lender and inquire about the statistics concerning those mortgage loan applications they turned down and approved. According to financial experts, it is not a good sign if the lender denies 20 percent of those who applied for a mortgage loan.
   
   
10. Your honesty
    Be honest when filling out all the information the lender requires from you to increase your loan approval. Beware that providing inaccurate information may backfire on you and no lender will be willing to work with you.

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