If you already own a lot on which you want your future home to be built, you can use that parcel of land as mortgage collateral. A mortgage loan is an excellent way to meet the construction costs. However, several factors can keep you from qualifying for a suitable mortgage candidate. Banks are unwilling to lend to the unsafe borrowers and the process of scrutiny continues to get more stringent than ever. That is why you need to take steps to brighten up your image as a borrower, first. And how to do that? Here are the three easy ways:

Repair and Increase Your Credit Score

A good credit score speaks of your eligibility for timely and orderly payments. Therefore, the lower your credit score is, the higher would be the interest rate to compensate the increased risk of lending.

Save Big for the Down Payment

Needless to say, the more cash you pay up in the beginning, the smaller loan amount you’ll require. Interestingly enough, buyers with a low loan-to-value ratio (LTV ratio), are considered to be less risky by the lenders. Consequently, your chance of getting qualified for a mortgage gets higher.

Ensure Stability in Employment and Income

Mortgage lenders prefer buyers who can prove steady employment for a given time span, usually, for a minimum two years. If you had been unemployed at any given point in your career or your income has declined due to any reason, these won’t go well for your application. Ideally, you should have been on the same job for the past couple of years, or if you have switched, it has to be a position with higher remuneration.

Qualifying for a mortgage or a home loan has never been easy. Lenders are particular about the financial criteria, and you need to take steps to overcome the glitches in your record that might come into your way of securing a good mortgage rate. If you think you are competent enough to be a mortgage or a home loan candidate, contact us today to know the possibilities.