Tips To Make Your Mortgage Application Bulletproof

It can be exciting to get your own four walls - whether it's your first home or you're looking to move. But sorting out your mortgage application could be more like a game of snakes and ladders. Just when you think you're getting somewhere, down a slippery slope you go and back to the beginning again.

It's possible to plan your climb your way to mortgage approval and make sure that there are no pitfalls. Here's how to make sure your real estate adventure isn't a game of chance.

Save Save Save!

It's not fun, it restricts what you're able to do a little, but the less a bank needs to lend you against the value of the property you're buying, the less of a risk you are to them. It makes it that much easier to approve a mortgage.

No Credit History

There are two sides to credit history that a mortgage lender will look at. The first is - do you have any credit history? If you've never had a credit card or had any kind of loan from a bank, you'll have no history of credit. While most people think that's great - you've been able to save and not need help - the banks see someone that has no evidence of paying money back. And that's a big risk for them.

Bad Credit History

The other side here is for those that do have some credit history. Have you missed payments? How long for? How long ago? Maybe you missed payment a few years ago and it was a one off, that'll probably be overlooked. But if you've missed payments often, had debt collection agencies put onto recovering money for the banks from you, then it's not going to look good.

There's no quick fix, but you can improve your credit history over time. Start by making sure everything is paid up to date and on time. Where you can - reduce the number of loans and credit cards you have, pay them off. If you struggle one month, call the lender and ask for help. It's more favorable to ask for help than to just default.

Don't Over Stretch Yourself

Just because you can just manage to afford a 5 bedroom, detached house with a double garage and massive yard in a fancy neighborhood, doesn't mean you should! If even you think it will be a stretch to afford it, imagine how the person who has to approve the money would see it. Be sensible and make what it affordable and comfortable for yourself. You'll be happier too as you'll still be able to have a life - go for dinner with friends and do the things that make you happy outside of homeownership. Look for smaller single family homes to start off your homeownership dream in a modest fashion.

Contact a home mortgage service for more information.