Ways Your Credit History Has A Bearing On Your Ability To Get A Mortgage Loan For many individuals, paying their home mortgage in full is often one of the largest bills they will ever need to contend with. Because of this, most mortgage lenders will only loan to individuals with a solid credit history. Anyone with poor credit will generally find themselves at a standstill with getting a lending company to supply them a home loan. People in this situation often find themselves going from one home loan company to another because they're constantly being turned down. But it's important to remember that a history of poor credit doesn't instantly mean that there's no hope at all. A lot of mortgage lenders take into consideration a number of other factors along with past credit. Lenders will look at your income currently, how much money you have to put down on the house and the amount of time you've been at your current job. While your past credit history is significant, your current credit rating score will be looked at as well. While you may not have had a favorable credit record in the past for whatever the reason may be, if you've shown a great improvement, this will be a plus for your situation. Lenders appreciate when you can show them that you have made an effort to change your situation for the better. Of course, it is true that a low credit score can ultimately be your downfall when trying to obtain a loan. And lenders also evaluate whether or not you can actually afford to pay the home off in a certain time frame. If the repayment is too high in relation to your income, then the application won't be approved. The interest rate on the home will be affected by your credit, and that means that the money owed will be affected as a result. It's to your advantage to maintain good credit so that you can better your chances of getting a loan. With a consolidation loan, it's possible to have your existing debts cleared in just one go, which cuts down on the total monthly payments you are making. With a better score, your interest rate will be reduced, which makes the repayments a lot more manageable. Many people assume that making a lot of money automatically puts the odds in your favor of getting a mortgage loan. The reality is that lending companies are more interested in how secure your current job is compared to your yearly take home pay. With this in mind, having a secure job will play a much larger role in getting your loan accepted. If, on the other hand, your job has a significant rate of layoffs, then that might be something of concern. Many people around the world have a dream to own their own home. However, there is the hurdle of requesting a loan and getting it accepted that must be attempted. Even if you get denied by one company, continue to look elsewhere as there are an abundance of lenders out there. The combination of your credit score, income and job stability are the critical factors that determine whether your application is accepted or gets a big red stamp that reads "rejected. Find the very best mortgage lenders around very quickly and efficiently when you use
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Published on Apr 10, 2014
Find the very best mortgage lenders around very quickly and efficiently when you use MortgageLocators.com. For additional details on Mortgag...