3 Effective Tips to Secure a Mortgage Loan

 A mortgage loan is a great financial aid that can help you buy your dream house. Lending institutions provide mortgage loans by approving applications based on certain criterias. Before applying for a mortgage loan, it is important to inform yourself with as much relevant information that will come useful.  In this blog, we will discuss the major criterias of approval and provide effective tips to secure a mortgage loan. 


 #1 Improve Your Credit Score

One of the first factors a lender looks at for mortgage approval is credit score. Your credit score is an indicator of your management with borrowed money. If you have a bad credit score, it is a major deterrent for the lender as it will be quick to come to the conclusion that your chances of defaulting the loan amount is high. Before applying for a mortgage loan, improve your credit score to earn credibility and trust from a lender. Aim to stay above 700 points in FICO score. 


#2 Have a Good Employment History

Securing a loan is all about earning trust from a lender and proving that you can pay back the loan amount. A lender needs validation that you have sufficient and consistent income. If your record of employment history is good and convincing to demonstrate reliable and consistent flow of income to your lender, the chances of approving your application increases.


#3 Increase The Size of Your Down Payment 

Down payment is a portion of the loan amount you pay to the lender upfront when you borrow a mortgage loan. If you can offer a sizable amount as a down payment to your lender, it validates your position as a  low-risk borrower and weighs heavily in favor of your application approval. Plan ahead and save up money for your down payment before you apply for a mortgage loan.


Conclusion

A lender considers various factors when approving applications for a loan. While preparing to apply for a loan, use the points mentioned above to substantially build on robustness on your mortgage loan application. If you’re looking for a lender with the lowest mortgage rate in Pittsburgh for a future home, Three Rivers Lending is where you will find the best deals for loans. Visit their website for any information you need about their service and policy. 


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