couple is having a meeting with their mortgage lenderIf looking to take a mortgage to fund your dreams of owning a home, you need to make a positive impression on your lenders. You want to prove to them that you’re indeed capable of living up to your word on repayments.

Whipping your finances into great shape is the key to successfully realizing your dream of owning a home, says, a provider of residential mortgages in Moses Lake. Given the average asking prices for a house are in the $200,000 range, you need a good source of credit to raise that much cash.

That’s where qualifying for a mortgage on good terms makes a difference. See, lenders are quite skittish about their money and often impose measures to help them safeguard their interests. They need to know that they can trust you to pay back the money when issuing a loan.

Put some skin in the game

Given that buying a home is a major, even life-changing decision, you shouldn’t rush into it. Rushing into it only serves to complicate matters, and your finances will suffer for it. As such, you need to prove your commitment to the lender when going about the process. One of the best ways to do this is to raise a substantial deposit. Usually, 20 percent of the home’s asking price is sufficient but don’t shy away from raising more.

Borrowing more than 80 percent of the loan comes with one disadvantage – private mortgage insurance. This legal requirement means that you will pay more each month and none of that money goes towards building equity in the home.

Prove you’re creditworthy

Depending on the plan you pick, a mortgage is a long-term relationship that spans for years, decades even. Hence, the lenders are going to dig deep into your financial history. You need to ensure they are pleased with what they uncover.

Ever the cautious bunch, lenders are delighted by people who pay their bills on time or in full each month and don’t carry too much of it. See, it would do to lend you more money if you’re already struggling to pay back what you owe. Such a finding only raises red flags, lowering your chances of qualifying.

If you’re hoping to use a credit facility to finance your dreams of buying a home, then you need to win over the lenders. You need to come off as a creditworthy borrower who poses little or no risk to their money.

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