If you are thinking about making the huge leap into the world of owning private property, or owning home, you probably cannot pay for the whole amount up front. In fact, only a very small percentage of Americans have the capitol saved up or available to them to pay cash for a home. The problem with getting a loan is that the lender then decides how much “house” a borrower is going to be able to afford. Here are five great tips to getting a mortgage or even a better mortgage than otherwise possible.

The very first thing and the best thing any potential home buyer can do is to raise their credit score. Making payments on time is the number one way to raise a credit score. In order to make payments on time, payments need to be made. If the buyer is living in an apartment, but the utilities in ones own name. Take out a small credit line with a credit card and always pay the balance every month. Pay off the first car as quickly as possible. Never miss or be late on a rent payment. Just being extra responsible with ones monthly bills will raise a credit score faster than anything else.

The second thing a potential home buyer may do is to work as hard as possible and do everything to get a higher rate of pay in the same arena of work. Meaning if the potential buyer works at home depot as a floor associate, they should do everything possible to be a supervisor and then a manager. The pay will go up but the industry will be the same showing a higher security to the lender that the borrower will not suddenly lose their job.

The third thing a potential home buyer should do to get an awesome mortgage is to save up every dime of surplus. The higher the down payment or the more funds available for a down payment, the better the options are going to be when looking for a mortgage. One a person with a higher down payment will pay less for the home so the home cost given all else equal will be less on the mortgage which means the buyer will pay less interest on it. Also, a buyer with more funds for a down payment will be more committed to the loan and the health of the home and a bank will be much more willing to lend to someone who is more committed to repaying the loan.

The fourth thing a potential buyer should do to get into a mortgage is to not overbid on a home. Meaning, a buyer who offers more on the home than the appraised value will most likely not get the funds from the bank. If the buyer puts twenty percent down as a down payment, but offers twenty percent over the appraised value the down payment is almost worthless.

Lastly, do everything possible to pay off all the debts. An individual or buyer with little to no monthly debt payments is much more eligible for a higher mortgage than someone who spends a higher percentage of their monthly income on other debts.

Author Bio: Juhlin Youlien writes about Fountain Hills AZ homes for sale and Paradise Valley AZ homes for sale and other real estate like Chandler AZ homes for sale and Surprise AZ homes for sale.

Category: Real Estate
Keywords: homes for sale, real estate, buying a home, selling a home, loan, mortgage, foreclosurehomes for sal