Job Stability The lender needs to see signs of stability. Don't make any sudden changes in your employment if you're planning to apply for a mortgage soon―stay at your job for well over two years.
Low Credit Card Debt Your back-end debt-to-income ratio plays an important part in getting approved for a home loan. This ratio is the total amount of debt payments you make each month divided by your gross monthly income. It should ideally be under 36 percent, but to increase your chances of getting approved for a home loan, work on getting that percentage below 30 percent.
No Charge-Offs A charge-off is the worst thing to have on your credit report because it means all the creditors attempts to come to an agreement regarding the debt has been ignored. Call all outstanding creditors and collectors in advance to come to a compromise regarding the debt as soon as possible―don't wait until a potential mortgage lender is pulling your credit report to find the negative items.
A Home Within Your Budget Along the same lines with minimizing your debt-to-income ratio, you should also minimize your potential monthly housing expense as a percentage of income (the front-end ratio). Your front-end ratio shouldn't exceed 28 percent, so to improve your chances of getting approved, choose a home that puts you closer to 20 to 22 percent.
Money Saved Up Loans with little money down are more difficult to get. Increase your chances of getting approved by saving up for at least 10 to 20 percent down.
We understand that for many people, buying or selling a home is probably the largest investment decision that they will make in their lifetime. Halo Group Realty LLC thus became active in selling Real Estate in 2008 and was setup to make this process a simple and painless transaction. Your dedicated agent will guide you every step of the way to make purchasing or selling your home enjoyable and exciting… as it should be!
Today, Halo Group Realty LLC is at the cutting edge of technology in offering assistance to those in need of real estate services, and we have revolutionized the method of delivering education to consumers. Halo is established as the place for consumers to get the knowledge and assistance they deserve in the process of facilitating the Real Estate transaction, positioning you in the best possible situation to get the best price when you either to buy or sell. With leadership, innovation and forward thinking, Halo Group Realty, LLC is poised to make a huge impression in the real estate market while providing clients the keys to home ownership.
Our goal is to help make your dream a reality and take away all of the stress that goes along with purchasing or selling your home. Whether you are purchasing new construction, an existing home, or just an open space for future enjoyment, representation by a Halo agent is a valuable tool in making your dream become a reality.