Filling out a mortgage application might seem more stressful than any test you’ve ever taken. With approval rates plummeting, and the economic downturn in full swing, it’s no wonder that mortgages are a source of financial anxiety for so many people. Luckily, there’s a cheat sheet.
1. Credit reports. Don’t walk into an application blind. Familiarize yourself with your own credit score. If it’s less than ideal, put some serious effort into improving those numbers before you rush into a major financial decision. Mortgage lenders want evidence that you are responsible and financially capable of paying back loans in a timely and consistent way. You are more likely to be approved for a mortgage if your application takes these things into consideration.
2. Get Pre-qualified. Once you have an idea of your financial identity, submit this information for professional evaluation. By assessing your current income, debts, and assets, the bank will be able to provide a general range of the loan you could qualify for. Remember, this doesn’t guarantee that the lender will approve your mortgage when the time comes; it just means that you will have a better understanding of your mortgage potential.
3. Educate Yourself. Knowledge is power. Learning about the home loan process will make you feel more comfortable when the time comes to discuss your options. You need to know the ins and outs of your finances and understand what you can realistically afford in your situation. Advisory resources are available to answer any questions you might have and determine the layout of your mortgage documentation, as it can be very extensive.
For more information about mortgage applications, call 803-765-1680 or toll free 800-854-9484 to speak with an expert.