Have you decided to apply for a no-credit home loan? Here are a few things you can do to improve your chances of getting approved:
Find a Way to Tell Your Financial Story
One important thing you can do to improve your chances of getting a no-credit home loan is make sure that you can clearly tell your financial story. Instead of looking at your credit report, the lender you are working with will want to look at other aspects of your financial life to make sure that you won't have a problem keeping up with your mortgage as time goes on. Some of the things they may look at include:
Rent Payment Records
Utility, Cable, and Phone Bill Records
School Tuition Paperwork
These are just some of the things you can use to create a financial portfolio for your lender. Create a traditional portfolio, set up an online portfolio, or simply write a letter of intention and include it with all of your paperwork in a manila envelope. Having everything ready to go for your lender's perusal will help make the process of getting your loan go more quickly and conveniently.
Save for a Big Down Payment
The more you can put down to purchase your new home, the less your lender will have to give you a mortgage for. And the less they'll have to loan you, the more likely it will be that they will approve your mortgage when all is said and done.
So make it a point to put a a few extra dollars in your down payment savings account every time you get paid. And do what you can to consolidate some of your assets to raise more money for your down payment. Maybe you can sell the golf clubs or the boat that your family rarely uses.
Work With a Specialist
It's important to find a no-credit home loan specialist to work with before you start applying for a no-credit mortgage. Your specialist will help you determine what kids of paperwork to collect and how to present your financial information for consideration when applying for your loan.
They will also help you find reliable lenders who are experienced when it comes to working with those who don't have a credit score. Working with a specialist will ensure that you can get all of your answers and concerns addressed so you don't overlook an important step or misunderstand the loan terms that are offered to you.
For more information, contact companies such as SWE Homes.