Before they approve you for a home mortgage, lenders want to be sure that you will be able to repay it.  They will take a detailed look at your financial situation to determine this.  There are several things you can do to improve your chances of getting approved for a home mortgage.  Not only will these actions help your approval they will also prepare you for managing your home mortgage payments once you obtain the home mortgage.

The first thing you should do is check your credit.  Make sure that there is no inaccurate information on your credit report.  This includes accounts that do not belong to you and accounts that are reported inaccurately.  Your credit report will come with instructions for disputing inaccurate information.  You can obtain a credit report by contacting any of the three credit bureaus or by visiting www.annualcreditreport.com.

Once you have taken the steps to clean up your credit report, next you should analyze your finances.  Take a good look at your income and spending each month.  Look for areas where you can decrease your spending.  This might be as simple as making a minor lifestyle change.  Come up with a budget for your household to add discipline to your spending habits.

Pay down your debts.  The lower your total debt load, the higher the amount of home mortgage you can afford.  Pay off minor debts like credit cards with low balances or collection accounts.  Not only will this improve your credit score, it will also make it easier for you to afford the home mortgage once you begin to make payments.  The lower debt load frees up additional funds in your budget allowing you a little extra room for furnishing your new home.

With the adjustments you’ve made to your household budget it should be easier to save for a down payment.  After paying off your credit card debt, you can put the money that would have been going toward your monthly credit card bill toward your down payment savings account.  A higher down payment allows you to borrow a higher home mortgage and afford a larger home.  You might have to make some sacrifices now to save for the down payment, but it will pay off when you are in a home you like.

Provided by the writing team of Gary Don Simmons, an award-winning agent specializing in Seattle, WA Real Estate. With 20 years of service based, business experience, Gary Don Simmons works hard to serve home buyers and sellers in Bellevue, Issaquah, Sammamish, Preston, Carnation, Snoqualmie, North Bend, Woodinville, Redmond, Newcastle, Kirkland, Bothell and surrounding areas. As a team of real estate professionals, our underlying goal is to serve our clients by providing unbiased and balanced information in an effort to honor, respect and empower our clients in making their respective real estate decisions.  If you’re looking to invest in the Seattle Eastside Real Estate Market, visit Gary at www.realestateeastside.com.

In the six months to one year before you apply for a home mortgage, you should not incur any new debt.  This includes using your credit cards and purchasing big ticket items like vehicles or boats.  Making large financial purchases raises a red flag in the lender’s eyes.  Even if you can make the purchase and still afford a home mortgage, it is best to wait until after you have been approved for the home mortgage to make such a purchase.  You should not take any action that might cause the lender to deny your home mortgage application.

Preparing yourself financially is one of the best steps you can take in the months before you make a home purchase.  The financial readiness will payoff long after you’ve moved into your new home.Fina