Do you want to get your mortgage application approved? Checking your credit reports and credit score is just one of the many things you need to do in order to increase your chances of getting approved. Here are others:

Get an up to date credit report

Your mortgage lender will look at three key information when you submit your home loan application. These are (1) a steady source of income, (2) down payment, and (3) a solid credit history. An up to date credit report will show you if there is anything that will hurt your credit standing.

Clear up inaccurate information

Wrong information can hurt your credit score and your chances of getting approved. Fix any misinformation in your credit history. If there are discrepancies, make sure to dispute these with the authorities. If you have proof, these discrepancies can be easily removed from your credit report.

Make sure you have no delinquent accounts

Delinquent accounts cover anything from bills in collection, judgments, charge-offs, and late accounts. Outstanding delinquent accounts can negatively affect your credit rating and hurt your chances of getting approved. Make sure to pay off any delinquencies to convince mortgage lenders that you’ll make your payments on time.

You can bury your delinquent accounts by establishing a pattern of timely payments. Don’t apply for a mortgage at least 6 months after you’ve made a late payment or paid off delinquencies. Remember, the older the delinquency, the better your credit standing looks and your chances of getting approved with competitive interest rates skyrockets.

Keep your debt-to-income ratio at a minimum

Your mortgage lender will think twice in approving your mortgage application if your debt-to-income ratio is high. To better your chances, bring your debt-to-income ratio down to 12% of your income. Harding Mortgages recommend that if you can bring it even lower, the better. Remember that once your mortgage is approved, your debt-to-income ratio will skyrocket. This should not exceed 43% of your income so you’ll still have money left for your other expenses.

Avoid getting new debt

Even if your debt-to-income ratio is below 12%, taking on any new debt can hurt your credit standing as this will make mortgage lenders suspicious of your capacity to pay. Stay away from any form of debt until after your mortgage is approved. This includes anything from getting a new car, tv, bike computers or buying new appliances using your credit card.

Close unused credit cards, direct debits, and mobile contracts

Lenders may also consider the amount of credit you have access to when applying for a home mortgage. Close all credit accounts that you no longer need or use. And make sure you contact the bank or provider to close the account — cutting up cards is not enough! Don’t be surprised if these people will ask you tons of questions about why you want to leave. So, be ready to stand your ground!

Improving your credit rating will increase your chances of getting approved for a mortgage.