With home prices and interest rates on the rise, it makes sense for any interested buyer to purchase a house sooner than later. The current situation still presents good deals, with prices still far from their pre-recession highs and low interest rates. However, the problem is that it has become difficult for many Americans to get a mortgage loan.
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To increase their chances at approved mortgage applications, potential buyers have several recourses. These need to be accomplished immediately as it may take some time before they make any impact on loan approval.
First, consumers can improve their credit scores. If they haven’t checked their credit scores, now would be a good time to do so. They can start by clearing up errors on their records and lowering their utilization ratio.
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During this time, consumers are advised not to open new credit card accounts, except for their first credit cards. New applications can pull down their credit scores and lower their chances. Those getting credit cards for the first time should do so about half a year before applying for mortgage. This way, they can get the benefits connected to their utilization ratio while having enough time to lower it.
Putting up higher down payments is also a good option. Lenders have reported that they are willing to work with consumers with lower credit scores when they have a good amount of the price of the house already saved up.
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Esplanade Capital represents a focused approach in property acquisition and management. Visit this website for more information on the real estate market in New York.
