5
Steps Towards Securing a Home Mortgage:
1.
Know
and maintain your credit score.
Your credit rating will be the first thing lenders look at, make sure you know what it is and where you want it to be (most banks look for a rating over 675) before you walk in to a bank, or apply for a quote online. This will also keep you in the know about any inaccuracies that may be in your credit history, giving you time to fix anything that may not be correct.
Your credit rating will be the first thing lenders look at, make sure you know what it is and where you want it to be (most banks look for a rating over 675) before you walk in to a bank, or apply for a quote online. This will also keep you in the know about any inaccuracies that may be in your credit history, giving you time to fix anything that may not be correct.
2.
Document
your monthly bills and determine how much you can afford.$$$
Lenders want to make sure that you will be able to pay them each month, so budgeting your monthly bills will show you what you realistically spend every month on bills. Be sure to include all credit card payment, car loans, school loans, insurance payments, and all of the other bills that are constant monthly expenses. Before you talk to a mortgage broker; gather copies of all your bills, three years’ worth of tax returns and pay stubs. This will be important in showing that your bills are under the maximum preferred 33% of your total monthly income.
Lenders want to make sure that you will be able to pay them each month, so budgeting your monthly bills will show you what you realistically spend every month on bills. Be sure to include all credit card payment, car loans, school loans, insurance payments, and all of the other bills that are constant monthly expenses. Before you talk to a mortgage broker; gather copies of all your bills, three years’ worth of tax returns and pay stubs. This will be important in showing that your bills are under the maximum preferred 33% of your total monthly income.
3.
Plan
on making a down payment.
Almost all lenders will require that you make at least a 10% down payment. In order to avoid costly private mortgage insurance (PMI) you will be required to make a down payment of at least 20%. Make sure that you work the amount of money you plan to put down in to your budget planning when figuring out your monthly expenses.
Almost all lenders will require that you make at least a 10% down payment. In order to avoid costly private mortgage insurance (PMI) you will be required to make a down payment of at least 20%. Make sure that you work the amount of money you plan to put down in to your budget planning when figuring out your monthly expenses.
4.
Shop
around locally and online fore mortgage lenders.
Make sure that you find the mortgage that best works for you, and also has the most competitive rates. Keep in mind that not all banks and lenders use the same criteria when determining the rate they are willing to offer you. While most banks do determine your rate based on the amount of your loan, there are many other factors that weigh heavily on the quote you will receive so shop around and compare.
Make sure that you find the mortgage that best works for you, and also has the most competitive rates. Keep in mind that not all banks and lenders use the same criteria when determining the rate they are willing to offer you. While most banks do determine your rate based on the amount of your loan, there are many other factors that weigh heavily on the quote you will receive so shop around and compare.
5.
Once
you have chosen a lender.
You have gotten all of your paperwork in order after figuring out a comfortable budget, saved for a down payment, shopped around for the lender that best fits your needs. Now it is time to apply for a prequalification letter. This letter, while not an actual loan, is stating that the lender of your choosing has agreed to lend you money for a home given the information provided is accurate upon their further investigation. A prequalification letter is one of the most important tools when looking to purchase a home, helping your chances of getting an offer on a home accepted.
You have gotten all of your paperwork in order after figuring out a comfortable budget, saved for a down payment, shopped around for the lender that best fits your needs. Now it is time to apply for a prequalification letter. This letter, while not an actual loan, is stating that the lender of your choosing has agreed to lend you money for a home given the information provided is accurate upon their further investigation. A prequalification letter is one of the most important tools when looking to purchase a home, helping your chances of getting an offer on a home accepted.
With
this letter in hand, all you need now is the right house, and I’ll be happy to
help you find it!
www.GeniyaK.com
www.GeniyaK.com
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