It can be incredibly exciting to lay claim to that gorgeous manufactured home you’ve had your eyes on for the longest time. You’re about ready to send in a manufactured home loan application… but hold on. Are you certain your application will pass? Here are some tips to give you the best chance of your application being approved for that home loan you’re after.
Settle on a Personal Budget
Sometimes banks approve loans even though the borrower knows that they cannot pay it back. It might seem like a godsend at first but consider the long-term consequences. Evaluate your lifestyle and income, before concluding on how much you can reasonably afford.
Double-Check Your Credit Score
You might think that you know your credit score best, but there’s no way to be absolutely certain unless you pull it up and check. Don’t underestimate the stealthy threat of identity theft and the myriad of other possible factors that could potentially play havoc with credit scores.
Manage Your Debt
Naturally, out-of-control debt won’t help borrowers in this application process. The debt-income ratio will be checked by lenders, and you’ll want it to be as low as possible to get a better deal. Do not add on to debts during the loan process as lenders will recheck it occasionally and at the conclusion of the deal.
Organize Your Financial Documents
Get your most recent W-2, current statements from all bank accounts, the last two pay stubs, and tax sheets for the last two years. You’ll need them to ensure the typically convoluted and bumpy process becomes a smooth ride from start to finish. This would really ease stress moving forward and lets you capitalize on situations like a sudden drop in interest rates.
After all that, consider getting a pre-approval from the bank first. You really don’t know how much the bank can or will loan before checking. This might be retrospective, but you run the risk of attaching yourself to a manufactured home and not having the means to buy it.
Have Cash on Hand
Save for rare circumstances, borrowers will oft need to submit a deposit. On top of that, cash is needed for home inspection, appraisal, and many other small fees.
Maintain Current Employment Status
Once the loan application has been sent in, do not change the employment status. As that is a basis for a loan’s approval or denial, changing it could delay the process, or in the worst case, result in the total cancellation of the loan.
We hope all this advice will come in handy for your next manufactured home purchase! If you are interested in getting your own manufactured home, Michigan Home Zones is an ideal partner. We will guide you through this application process. Feel free to contact us to find your dream manufactured home today.