How to Get a Mortgage Approval

Everyone wants the American Dream, and a big part of that dream is owning your own home. Unfortunately, not many of us have the entire amount of money needed to buy a house. We need to mortgage a large portion in order to get that house. Here are some ways you can assure yourself of getting a mortgage approval.

Difficulty:

Moderate

Instructions

1. Score a high credit rating. An excellent credit history will show potential lenders that you are not a high risk. Have a credit card or two, even if you don't use them, to show your credit history. If you do use them, pay them promptly every month.

2. Pay your monthly bills on time. Don't be late when paying your utility bill, phone bill, car insurance or any other monthly expense. It's much easier to get a mortgage approval when you can prove you have a history of paying your bills on time.

3. Verify your full-time employment. Show a pay stub or a copy of your most recent income tax return. It helps if you have had the same job for at least two or three years or, if you have changed jobs in the recent past, that you are still in the same field or in a similar line of work.

4. Put down at least 10 to 20 percent of the price of the home as a down payment. The less the bank or mortgage company has to lend you, the more apt you are to get a mortgage approval.

Tips & Warnings

• Try to get pre-approval for a mortgage from a bank or lending institution before looking for a home. A pre-approval letter will show potential lenders you are a "safe risk" when it comes to getting a mortgage.

• Show copies of bills you have paid on time to establish a credit history if you are one of those people who simply refuse to have credit cards.

• Shop around when it comes to seeking mortgage approval. See what different banks and mortgage companies have to offer when it comes to types of mortgages, interest rates, length of loans and any payment penalties.