Published on December 9th, 2014 | by Home and Family0
Three Things Everyone Should Know When Applying For a Mortgage
With the state of the American economy and housing market, most people in the United States will find that they need a home loan or mortgage to afford to buy or build the house that they want. Unfortunately, you need more than the best mortgage lenders and a low interest loan to create a situation that is affordable and manageable. For this reason, it is important to keep a number of basic steps in mind before you try to set up a loan. Read on to learn about the things you should always remember when you compare home loans and mortgages.
Have a Plan
If you show up at the office of one of the best mortgage lenders in the U.S. and request low interest home loans without a plan, its safe to say you won’t leave with what you need. When you talk to a lender, you need to be able to explain why you want a new home, what you plan to do with your old one, what you will do with the money you will receive and more. This should prove to lenders that you are not trying to commit fraud and are a worthy candidate for their time and money.
Know Your Credit and Take Steps to Improve It
Today, your credit score will need to be around 740 to get good rates and terms for your home loans and mortgages, and even this will not guarantee that you will get a loan. Because mortgage lending focuses on three of your credit scores, not just one, it is worth paying for a three-bureau credit check, which will typically cost $25-$50. Once you know your numbers, be prepared to explain any marks or blemishes on your history in writing.
Show the Money You Have and the Money You Make
To apply for mortgage rates, you’ll need documentation of your income from the past two years, as well as your current earnings, all the pages of your tax returns, every page of your bank account, and documentation of any money you have saved in a 401k or retirement fund. Be prepared to explain any discrepancies, including drops or increases in pay and deposits not from your job. Lenders will also call you at the beginning, middle and end of the loan process to be sure that you still have the same job.
When it comes to getting a mortgage or home loan from the best mortgage lenders, the most important things you can do is prepare your case and be ready to answer any questions about your financial history. By keeping this in mind as you plan for a mortgage and organize your credit, you are more likely to access the best mortgages for you. Start gathering your information and organizing your plans today! Visit here for more information.