Getting a Housing Loan? Here are 3 Ways to Prepare

cash, contract, calculator and home at backgroundAre you planning to take that first big step this year? Here are some ways you can prepare yourself for what could possibly be the biggest financial obligation in your life. Try these practical tips from Wasatch Peaks Credit Union if you’re applying for a housing loan in Ogden, Utah.

Check your credit

It’s no secret that your credit score is vital to your chances of getting a housing loan. Lenders go through your credit history to see if you’re a good candidate. So if your credit score is quite poor, work on fixing it. Don’t be discouraged if you have poor credit rating now. It doesn’t automatically mean that you won’t get approved for a housing loan.

However, it’s advisable that you start fixing your credit score months before you apply for a loan, preferably four to six months. It’s also recommended that you stop buying on credit and refrain from opening new credit lines.

Fix your current debts

Apart from your credit card debts, it’s important to work on paying off your other debts, including car loans. You have to show the lending company that you can handle your current financial obligations, so they won’t think twice about allowing you to add more financial responsibilities. Like your credit score rating, it’s important to do these months before you apply for a housing loan.

Try not to shuffle money around

Bank statements are some of the top requirements you need to provide when applying for a house loan. It’s important to check the history of your bank statements. Have you recently canceled an account or made a huge sum deposit on one and shuffled it around? Try not to do that. What you need to show the lending company is that you have stable bank statements.

Homeownership is a long journey, but it is worth it. But just like any other huge financial obligation, ample and practical preparations are the keys to getting the using loan you need to buy your dream home.