Wednesday, June 16th, 2021

There are a lot of nerves that come with getting approved for a home loan—this is your means of buying the home you have dreamed of! However, home loans don’t have to be so nerve-wracking. Keeping good records of your employment history, being prepared with a solid initial offer, and demonstrating your preparation with savings will all make sure you get approved for a home loan.

Maintain a Consistent Employment History

Prove that you are a responsible employee and therefore a reliable investment for banks to make, by providing a history of your employment for at least 2 years. This should include the places you worked, specific employer names, your wages, and your schedule, as well as your adherence to that schedule. Keep track of these elements of your employment! Frequent changing of jobs isn’t necessarily a red flag if you can show that each of those jobs was successful and you were a quality employee.

Put More Down

You’re generally expected to put down at least 20 percent of the home value. If you can, though, put down more! There are numerous benefits of a large down payment. Most obviously, if you compete with other buyers for a property, a bigger down payment shows your likelihood of closing the deal and therefore makes you a more attractive buyer. Additionally, you will not have to pay private mortgage insurance (PMI), your monthly mortgage payments will be smaller, and your interest rates will be lower. Because you are borrowing less from the bank from the beginning, your total interest for the duration of your loan will consequently be less as well.

Show How You’ve Saved

Finally, demonstrating your preparation in your savings will assure your reliability to the banks you are asking for loans from. Set up an emergency savings fund and/or a fund for house-specific expenses. Establish firm goals and well-detailed plans on how you intend to budget your income toward living expenses, utility needs, and loan payments. It may be beneficial to meet with a financial advisor for your confidence in this plan and the bank’s confidence in its realism. Include this information in your documentation of your savings proof.


Be prepared for your home loan request by compiling a sufficient employment history, being ready with a substantial down payment, and creating a savings account and plan for your financial future. With these established, securing the home loan you need will be a sure bet.

Read this next: Tax Advantages Every Homeowner Can Benefit From