Finding it Difficult to Approve Your Mortgage? Learn What Lenders Consider Before Approving Your Application! It is never a comfortable experience to apply for your first home loan. It is not 'comfortable' in the sense that you will have to talk about your financial condition and make 'others' believe that you will be in a position to repay the loan. Interestingly, it is possible to make your mortgage application less intimidating by working with the right mortgage lender or mortgage broker. You should also educate yourself about what lenders consider before approving your mortgage application. Understand that lenders consider the ability to repay a mortgage in different ways. They check your unique circumstances and pay attention to your credit history to check if you have borrowed anything in the past and repaid it too. Interestingly, you are likely to get your application approved if you have taken a loan in the past and repaid it than never taking a loan in the past. They want to know that you know how to manage mortgage payments. At the same time, they are going to consider your capital. It means that they want to ensure that you have accumulated some assets in the past and that you have something to repay their loan if things do not go as planned. They are also going to be quite concerned about collateral. In case, you are looking for a mortgage, you will be offering your home as collateral. Experts believe that lenders will always consider your 'capacity' before they approve your application. Capacity, in this case, refers to 'debt servicing'. It means that they will consider that your housing cost stays well below 30% of your gross income. Along with capacity, they are also going to count in your character before finalizing a decision. They will consider the nature of your job and how well you have been managing things in your workplace. They are likely to consider your current residence and the duration of your stay in that location. It actually shows that a loan approval process is a combination of many subjective as well as objective things. Therefore, it makes great sense to take your time and improve your financial standing before even applying for

a mortgage. Having a good credit score is going to help a lot, and you may have a better chance of getting a mortgage if you have credit cards with no outstanding dues. In short, you need to tell your lenders that you know how to manage financial responsibilities and that their money will not go wasted. But, it is equally important to ensure that you are working with a right lender – some may approve your application but deceive you by offering some extremely high rates. If you have a bad credit history, work with a mortgage broker to learn how you can improve it. Working with a right mortgage lender can save you from running into any trouble, so be sure to take advantage of this option if you are not sure about anything. Article source: