Whether buying your home for the first time or refinancing, your goal is to maximize your chances of approval while securing a favorable deal. After all, applying for mortgage loans in Redding, CA, is a decision that will impact you for years to come.

In this post, we are sharing some tips on how to boost your chances of approval for your application for a mortgage loan in Redding, CA. Apart from improving your credit score, saving for a larger down payment, and reducing your debt-to-income ratio, you also need to consider the following:

• Avoid job changes (if you must, stay in the same industry) – the reason for this is that lenders prefer job stability. When you switch to a new job as a matter of preference (especially to a commission-based role), it may negatively impact your chances for approval as lenders tend to favor borrowers with predictable income.
• Refrain from putting large cash deposits before applying – there is no problem with a large cash deposit, provided you can support them with documents that the asset is acquired legally. However, it may cause delays when lenders flag such a large deposit as unexplained. So, if you are receiving money, for instance, from your side gig, gifts, or asset sales, it makes sense to document everything clearly to avoid potential issues in your application.
• Save for reserve fund – while many buyers only consider saving for a down payment, you should go beyond that. Saving for a reserve fund (aka mortgage reserve fund) can also help boost your chances as this will reassure lenders you can cover unexpected financial setbacks. Having 3-6 months’ worth of savings intended for mortgage payments is a good amount for this fund.

There are plenty of things to do to better prepare for your application for mortgage loans in Redding, CA. A professional mortgage broker from HomePlus Mortgage can help you navigate the process seamlessly.

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