Getting into a house is harder than ever. Since the housing market crashed about 8 years ago, lenders are more skeptical than ever to give out loans. This can be frustrating for people who want to buy a house, but are having a hard time getting approved for the loan. Here are some tips for qualifying for a home loan.

1. Get A Co-Signer

One of the best things you can do is get a co-signer. A co-signer will be someone who is a secondary signer on the loan. This means that if for some reason you cannot pay the mortgage they will ask this person to help you out, or use their assets as collateral.

The main reason that it will help you is that the bank will factor in the co-signers income and credit score when giving you the loan. This means that you still must make your own income to qualify, for instance, you cannot ask for a loan that is too high for your income just because you have a co-signer. Instead, you will still have to prove that you make enough money, but if you don't have good credit, or if you don't have much financial stability, like you are self-employed, they will want a co-signer.

It is important that if you choose to use a co-signer that you communicate clearly with them about your payments. If for some reason you are unable to make your payments you will need to tell the co-signer. This is because their credit score could be damaged by you not making your payments.

2. Pay Off Debts

One of the biggest hang-ups for people getting into a house is that they have too much debt. When the banks factor in how much you can qualify for with your house they will consider your debt to income ratio. What this means is that they will calculate your debt payments each month, like credit card payments, student loans, car payments, etc., and then they will add that to your expected mortgage payment. If the amount of the debts and the mortgage exceed a certain percentage of your income, they will not approve you for the loan. Thus, if you can get your debt lowered you will be far more likely to get approved for your mortgage.

By doing these things you can make yourself more prepared to qualify for a home loan. If you are thinking about a home loan, the best thing you can do is talk to a lender about your options. For more information, contact McLandress James Mortgage Broker.

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