When preparing to own a home, you have to also prepare yourself for mortgage payments. It always pays to remain realistic. Before jumping into the process, mortgage companies in St. George recommend first knowing about the basic application requirements.
Here are three of the basic mortgage application requirements:
Applying for mortgage does not mean that you will not have to pay upfront. Mortgage contracts normally need a deposit of at least 10 to 20% of your chosen house’s value. This rule applies regardless of location and type of real estate.
If you are wondering if applying for a loan to pay your mortgage deposit is a viable alternative, the quick answer is no. Mortgage providers do extensive background checks. Cases like paying mortgage deposits through loans are seen as legitimate red flags.
Good Credit Score
If you have outstanding bills on your credit card, chances are you will have a hard time landing a mortgage contract. The same thing applies if you have existing unpaid dues with your loan providers. To be able to have your mortgage application approved, you need to have a credit score upwards 750 on the Fair Isaac Corporation (FICO).
This condition has two prongs. One is stability in terms of how much your salary is. The second is stability in terms of you as a valuable asset in your current job that there is no risk for you to get laid off. You must pass both of these considerations before they can approve your mortgage.
If you feel intimidated by these requirements, rest assured that you can always seek help from a mortgage company. Such companies offer their clients support, advice, and guidance throughout the entire mortgage application process.