Ten Tips for Getting Approved for a Mortgage

(Tips for Tenant)

  1. Always make your land contract or rent payment on time.
  2. Make your land contract or rent payment by check, and if possible keep these cancelled checks. This is the best proof to a lender that you have made your payments as agreed.
  3. Keep a copy of your signed and dated land contract.
  4. Don't wait until the last minute to apply for a mortgage to pay off your land contract. Call at least a year ahead of time, so the accuracy of your credit report can be checked, etc. and discuss what options might be available to you.
  5. If possible hold off on any large purchases until you have paid off your land contract. As an example, buying a car with a $400 a month payment may cause you to have trouble qualifying for a mortgage loan.
  6. Keep your property in good shape. If you are buying your home on a land contract the lender will want the property appraised. The higher it appraises for in comparison to what you owe the better for you!
  7. If possible, don't change jobs right before applying for your mortgage.
  8. If you don't have any established credit that reports to the credit bureau - try to establish some.
  9. Keep all your important papers together -such as bankruptcy papers, divorce and separation papers, etc.
  10. If you are considering purchase, call as soon as possible. The sooner you plan your strategies for buying your home or paying off your land contract the better.