Applying for a mortgage can be one of the most difficult loans you try to obtain during your life. So it is important that you have all of your personal finances in order to increase your chance of getting approved for the loan.
Before shopping around for a mortgage, you should check both your credit score and your credit report. If you notice your credit score is lower than you expected you may want to view your credit report.
You are allowed to obtain a free copy of your credit report from each of the three credit bureaus every 12 months, thanks to federal law. After carefully looking over your report you can dispute any negative items that may have lowered your score. Many consumers turn to a credit repair company to help them with their case.
When you're applying for a mortgage, don't also apply for other types of credit at the same time. If you do, lenders may see you as more of a credit risk, which can decrease your chances of getting approved, according to U.S. News & World Report.
Having a steady job can also improve your chances of getting approved for a mortgage, the news source reported. However, with an unsteady job market and a high unemployment rate, many Americans have had difficulty holding work for an extended period of time.