Landing the Loan of your Dreams

Landing a great Autopilot House Loan starts with understanding what factors the various lenders out there are looking for when deciding whether or not to offer a person a loan. The two primary considerations are your income and your credit. It's not just as simple as having an income though and having decent credit, though, there is more to each criteria that must be considered by a lender before deciding that you are a worthwhile risk:

Your Income

Having a high income is only one part of consideration that lenders make when deciding whether to approve a home loan. What if a person's work history shows, for example, that they make $300,000 but have only been making that amount for a month and before this lucrative job, they were bouncing from employer to employer, never staying in one place for more than six months or making more than $50,000 per year. It would naturally seem a bit suspicious to any lender and cause them to consider this loan at a higher risk.

Work history and length of current employment is nearly as important as having the income sufficient to pay back the loan that you are seeking from any lender. You should, if possible, be employed with your current employer for a minimum of one to two years and longer is better. All other factors being equal, a person working with the same employer for 10 years making $75,000 per year may be just as likely to get a loan as someone making $100,000 with an employer they've only been with for one year or less.

Your Credit

Your credit score is a fairly complicated beast. It is comprised of information from many lenders, your behavior toward them, how many you have, how long you have had them and what types of lenders you associate with. So while a credit card from Wal Mart and a credit card from Chase bank may both make the same types of reporting to your credit report, they will not be weighed the same or have the same effect on your credit score. Given this incredible complexity, here are a few steps that you can keep in mind to make your credit score a good and more likely to win more favorable Autopilot house loans to your cause:

• Keep your accounts short: A big factor of your credit score is your available credit verses your overall credit being used. This means that if you have five credit cards with $15,000 total limits across all of them, how much of that $15,000 you are using is going to be taken into consideration when you are applying for a loan. Using less than 25% of your total available credit is recommended, so you should, if possible, avoid charging too much to your credit cards without paying them off quickly.
• Pay on time: Making one payment late on a car loan or credit card account can stay on your credit report for up to seven years as a mild (but still present) blemish. Old late payments aren't really considered all that much, but if you have recent late payments that are reported on your credit it will have the effect of dragging you're your credit score and causing a potential lender a little extra worry.
• Avoid or pay off all collections accounts: Credit collection accounts are the biggest no-no on your credit report next to a recent bankruptcy. These negative events tell a lender that you may have a tendency to obligate yourself to a debt and then choose to simply ignore it at your convenience - not something a potential lender is interested in seeing.