I’m going to piggyback off of vol. 4 and go into more detail. Keep these tips in mind in order to get approved for a loan. The “more detail” is bold/italicized.
Credit –
Most banks and lenders consider anything above 720 excellent.
How to get there:
Check your report for inaccuracies (easiest to catch errors if you monitor your report every 4 months)
Pay your bills on time (absolute rule for the prior 6 months)
Keep your revolving usage (credit card balances divided by credit card limits) below 30%
Income –
Keep your Debt-To-Income (DTI) under 30%.
How to get there:
“Making more” isn’t nearly as easy as the above category but there are still ways to keep your DTI down
Pay off smaller loans with larger payments
Pay down credit card balances to reduce minimum payment due
Add a co-signor (spouse, family member)
*I love the idea of a parent co-signing for a child, but vice-versa really irks me*
Collateral –
Keep Loan-To-Value (LTV) under 80%.
How to get there?
ALWAYS make a down payment of 20%
*If you plan on putting down 3%, you might as well pick it back up and not make the purchase*
Negotiate a lower price (everything is negotiable)
