Home Loan in Naples, FL – Boosting Your Chances for Approval

March 29, 2024

Home Loan in Naples, FL – Boosting Your Chances for Approval

By Published On: March 29th, 2024Categories: Home Loans, Home Mortgage Loans, Naples FL

Here’s the thing that every borrower should realize: not all those who apply for a home loan in Naples, FL, get approved. According to the data published on the National Association of Realtors website, in the last five years, the rate of mortgage loan approval in Florida was just 55.54%. That means 4 out of 10 got rejected.

If you plan to apply for a home loan in Naples, FL, do your homework to increase your chances of approval. Here are some tips that you may find helpful:

Improve your credit score. It is one of the main criteria lenders consider when assessing a mortgage loan application. So, before applying, make sure you have a healthy credit score. If your credit score is not good enough, improve it before you go to a lender and submit your application. Things you can do for your credit score include making on-time payments of your financial obligations, keeping balances low, and limiting new credit applications.

Put a larger down payment. The advantage of paying higher amounts for a down payment is that it reduces your loan-to-value ratio, which also helps improve your chances of getting the best mortgage interest rates. A 20% or larger down payment is the recommendation, as it will also mean you will not be subject to a mortgage insurance requirement, saving you a good amount of money.

Lower your debt-to-income ratio. It is the ratio between your total monthly debt and gross monthly income. Why do lenders find debt-to-come ratio assessment necessary? Because they would be able to gauge your ability to manage the payments you make every month. At the same time, it provides a helpful idea of whether or not you can still afford to pay for a loan, given your monthly obligations. In general, lenders would like to see debt-to-income ratios that are 30% or lower. Yes, the lower, the better.

Are you looking for a reputable mortgage company to help with your home loan in Naples, FL? Look no further than Homeplus Mortgage. Contact us today at (727) 275-0104 for your inquiries.