The decision to buy a home is one of the critical aspects during the lifetime of any person. There can be nothing more comfortable that having a roof on top of your head for all seasons, a haven that you can call your own and a recluse to return to after a long hard days work. The need for a mortgage for purchasing a home cannot be overlooked unless you have inherited millions or are a celebrity. Before the economic slowdown a few years ago, banks and credit unions were more than willing to lend any amount of money towards the purchase of a home; however, today, getting approval for Arizona mortgage from a Tucson credit union is by no means an easy task. With more rejections than approvals in recent times, here are certain mistakes to avoid if you want to get the loan the first time around.
One of the biggest mistakes to avoid while applying for Arizona mortgage is shopping for expensive items. If you are planning to buy a car, an insurance policy and apply for the mortgage from the Tucson credit union all at the same time, the chances of rejection are pretty high. One of the norms governing home loans stipulate that the lender has to take a look at the credit score while either approving or pre-approving a mortgage request. Major purchases have an impact on the score, which in turn influences the lenders decision.
Applying for another line of credit when you are seeking approval for Arizona mortgage from a Tucson credit union is another mistake that needs to be avoided. Whether it is a credit card or any other form of credit, refrain from applying for it unless your mortgage application is approved. Each time you apply for credit, an entry goes on to the credit history which is one of the documents that the lenders go over with a fine tooth comb before approving or rejecting any loan. Any discrepancies on the report will reflect badly on your financial health and reduce the chances of approval.
It is important not to change jobs just before you apply for Arizona mortgage from a Tucson credit union. Lenders look out for stability before giving their nod to the mortgage request. Changing jobs will be taken as a sign of instability and could impact negatively on your application. You will have to submit pay stubs for the last three months from the employer along with the application form. If you do not show continuity in income for the last 90 days, you stand to risk rejection.
Do not limit yourself to just one lender when you are applying for Arizona mortgage. Though banks may be the first choice for many, do not neglect the presence of the Tucson credit union. The latter tend to offer competitive rates and have slightly relaxed guidelines as compared to the banks for mortgages. It is recommended that you apply for preapproval from multiple lenders and then, once you find the home of your choice, opt for the lender offering the most favourable terms.