Tips For Securing a Mortgage in 2022

As we enter a new year, some people are preparing to buy a new home. Over the course of 2021 we experienced high home prices and a limited number of homes on the market. But what about 2022?

If you’re considering buying a new home you likely need a mortgage. You’ll want to put yourself in a good position to qualify for a home mortgage. Here are a few tips to help you out:

Tip #1 Compare lenders

Each lender out there has the ability to set its own rates. If you compare lenders by shopping around a bit, you may end up with a better deal. Keep in mind, though, every time a lender pulls your credit report it’s a hard inquiry. Too many spread out over too long could bring down your credit score.

Tip #2 Know what’s on your credit report

It’s important to take a look at your own credit report before you even go to a lender. Make sure there aren’t any problems, and if there are, try to resolve those issues right away. This includes taking care of any errors that could hurt you when you apply for a home loan.

Tip #3 Know your credit score

Your credit report may not list your credit score. To get it, you may have to pay for it or you may need to check with your credit card or bank. A higher credit score helps you get a better mortgage rate.

Tip #4 Boost your earnings

If you can, think about boosting your earnings. Taking on another income source can help ensure you qualify to borrow.

Tip #5 Pay off some debt

It certainly can’t hurt to pay off some debt, either. If you’re able to lower your credit card debt, you can boost your credit score and help with your debt-to-income ratio.