by Harrine Freeman
A home is one of the largest purchases you will ever make in your lifetime. Here are some ways to ensure you get approved for a mortgage loan.
1. Proof. Showing proof that you have funds available to cover the down payment.
2. Sourced and seasoned. Sourced means the lender can determine where the assets came from. Seasoned means that the assets have been in your bank account for at least 30 days but varies by bank.
3. Debt. Pay down as much debt as possible. Your debt-to-income ratio should be 36% or less (your monthly debt divided by your monthly income).
4. Income. You must show proof of income and taxes filed for the past three years.
5. Collateral. Possessing collateral or assets such as a retirement account, stocks, bonds, a car, real estate, art, etc. eases banks fears that you will default on your mortgage loan.
6. Credit. Possess a credit score of at least 700. Explanation of any late payments in the past 2 years.
Here are some helpful links regarding personal finance: http://www.hefreemanenterprises.com/books.html
How to Increase Your Credit Score by Harrine Freeman
Credit scores are used to determine: if you will be hired for a job, approval for credit, interest rates, terms and conditions, down payment costs, rates for medical and other insurance coverage, approval for cable and internet service and more. A credit score ranges from 300-850 with 850 being the highest score and 300 being the lowest core. A good credit score is 700 or above. Here are 6 things you can do to increase credit score:
1. Review. Review your credit reports at least once a year at www.annualcreditreport.com and fix any errors on your credit reports.
2. Balances. Keep credit card balances at 20% or less of the credit limit.
3. New Accounts. Don’t open more than one new account every 2 years.
4. Payments. Pay all your bills on time. Get current on any late accounts.
5. Credit. If you have bad credit open a secured credit card to help reestablish your credit history.
Meet the Author
Harrine Freeman is an authority on personal finance. She is a financial counselor, CEO of H.E. Freeman Enterprises and Author of "How to Get out of Debt: Get An “A” Credit Rating for Free," a self-help book that provides a step-by-step plan on how to get out of debt, increase credit scores and plan for the future.
She has impacted the lives of thousands through speaking engagements and counseling. She helps client's prepare for financial freedom, by providing useful advice to steer clients in the right direction.
She is a member of Credit Professionals International, American Association of Daily Money Managers, American Association of Individual Investors and National Speakers Association. Harrine has been featured in: Featured in Market Watch, Wall Street Journal, Forbes,The Washington Post, NASDAQ, Huffington Post, MSN Money, Black Enterprise, Essence Magazine, Ebony, and Woman’s Day magazines.
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