Mortgage Home Loans by Sean Young

Colorado Home Loans | NMLS: 191647

  • Contact
    • Contact Sean
    • About New American Funding
    • About Sean
  • Loan Programs
    • FHA Home Loans
      • FHA Home Loans
    • VA Home Loans
      • VA Funding Fee Table
      • VA Home Loans
    • Metro Mortgage Assistance Plus
  • Testimonials
  • Apply Now
  • Blog
  • Metro Mortgage Assistance Plus
  • RealtorĀ® Resources
    • Agent Mastermind Webinars
  • Mortgage Info
    • Mortgage Calculator
    • Closing Costs
    • Document Checklist
    • Home Appraisal
    • Home Inspection
    • Interest Rates
    • Loan Process
    • Mortgage FAQ
    • Mortgage Glossary

Three Key Tips to Help Ensure Your Mortgage Pre-Approval Isn’t Declined

November 19, 2014 by Sean Young

Three Key Tips to Help Ensure Your Mortgage Pre-Approval Isn't DeclinedIf you’re thinking about buying a new home and using a mortgage to help cover some of the purchase costs, it’s a good idea to get an initial pre-approval from your lender before putting in an offer.

In today’s blog post we’ll share three quick tips that can help to ensure that your mortgage pre-approval isn’t declined.

Demonstrate Your Income and Good Credit

A mortgage is a major financial transaction and one that carries a certain amount of risk for the lender. It’s your goal to help them see that you have the ability to make your monthly payments and that there is very little risk in approving your mortgage. Be ready to demonstrate all of your sources of income and that your credit rating is clean.

It may be worth paying for your credit report before starting the pre-approval process so you can clean up any black marks or false reports and so that you can see what the lender will see when they check your credit history.

Choose the Right Property at the Right Price

As the home you’re buying will be used as collateral to back the mortgage, the lender will need to see that there is enough value in the home to cover the cost of the mortgage should you fail to pay it back. The “loan to value” or LTV ratio is the amount of your mortgage divided by the value of the home. For example, if you’re borrowing $150,000 to buy a home valued at $200,000, you’ll have a LTV ratio of 75 percent. Keep in mind that each lender will have their own target LTV that they prefer to work with, so you may need to shop around a bit.

Start the Process with Multiple Lenders

Finally, if you feel that your income or credit history isn’t perfect you may want to consider visiting a couple of different mortgage lenders to see what they can offer you. There are dozens of different mortgage products on the market today, and each lender has their own set of qualification criteria that they will use to assess risk and whether they feel that you can afford to pay the mortgage back. Getting a second opinion may help you to discover a more suitable mortgage or one with a better interest rate.

As you can see, there are a number of ways that you can work to ensure that your mortgage pre-approval passes without a hitch. For more information about pre-approvals and to get the process started, contact a local mortgage professional today. After you’re approved it’s only a matter of time before you’ll be moving in to your new home.

Sean Young

Sean has been a Mortgage Loan Officer in the great State of Colorado for the last 25 years, a nationally recognized real estate blogger who loves teaching Social Media, Real Estate Technology, and Continuing Education classes. Sean provides weekly Real Estate Agent Tuesday Webinars that give the latest marketing strategies and tips on how to grow, build, and increase your visibility, credibility, and brand as a Real Estate Agent. Looking for a Home Loan? Sean and his team can provide you with the expertise, professionalism, and customer service that will ensure that your transaction goes smoothly.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgages, Mortgages and Credit

Sean Young Loan Officer
Click Here
to Apply Now →

Get a Rate Quote →

Five Star Mortgage Professional
VAREP
Top Mortgage Broker in Denver

Connect with Me!

Mortgage-Backed Securities & Treasuries - Click Below for More Information

Loan Program of the Month

Visit Sean's profile on Pinterest.
Sean Young

Browse Articles by Category

Search for a specific subject

Recent Articles

  • Mortgage Shopping And Your Credit Score
  • What To Know About a 40-Year Mortgage
  • What’s Ahead For Mortgage Rates This Week – August 15, 2022
  • The Top Reasons To Downsize When You Retire
Equal Housing LendingNMLS Consumer Access


DORA

Our Location


5299 DTC Blvd Suite 300
Greenwood Village, CO 80111

Copyright © 2022 · Powered by MySMARTblog