The Do’s and Dont's of Obtaining a Mortgage


There are so many things that you need to consider when you are deciding if it’s the right time to purchase a home and start shopping for a mortgage.  Whether it’s your first mortgage or your third, there are certain unavoidable things that must be taken under advisement to help you qualify for the ideal mortgage loan.  Here are those that made the top ten on my list:
 
1. Even before you seriously begin house hunting or contacting a realtor, you need to start earnestly saving your money if you have not done so already. You need to ensure that you will have enough cash saved to make a solid down payment and that you will be able to afford any closing costs associated with the purchase.
 
2. Pay your current bills in a timely manner so that your credit history is in good shape before potential lenders start researching your application. This includes car payments, mortgage payments, credit cards, etc.
 
3. Pull your credit reports and review them. Verify that they are accurate and make any corrections necessary.
 
4. Pay down your credit cards and installment loans as you can.
 
5. Prepare several hypothetical budgets to determine what minimum and maximum monthly payments you can afford to live with that will not drastically change your lifestyle.
 
6. Determine the price range of the homes you can afford to look at, and consider the upcoming closing costs and the down payment amount.
 
7. Spend time researching various lenders. Include mortgage companies and banks. Don’t forget to visit rateyourlender.com to read what fellow homebuyers are saying about the lenders and the practices being used to issue today’s mortgages. Keep your eyes on the rates and the types of loans you may qualify for.
 
8. Pay off any collection notes, tax liens, etc. Make sure to get documentation proving these accounts have been paid in full.
 
9. Continue to manage your finances as you normally have.  Sudden changes in spending habits or deposit trends can send up red flags and negatively impact the application process and potentially the approval.  
 
10. Gather and maintain all documentation that will be required for the loan application process.  Keep all paystubs, banking statements, deposit slips, income tax forms and any other financial information close at hand for easy copying and submittal.
 
Remember that potential lenders are looking for fiscally responsible trends in potential borrowers.  Keep excellent financial records and consult a financial counselor if you have any questions about things you can do to further improve your credit rating.
 

The Do’s and Dont's of Obtaining a Mortgage


There are so many things that you need to consider when you are deciding if it’s the right time to purchase a home and start shopping for a mortgage.  Whether it’s your first mortgage or your third, there are certain unavoidable things that must be taken under advisement to help you qualify for the ideal mortgage loan.  Here are those that made the top ten on my list:
 
1. Even before you seriously begin house hunting or contacting a realtor, you need to start earnestly saving your money if you have not done so already. You need to ensure that you will have enough cash saved to make a solid down payment and that you will be able to afford any closing costs associated with the purchase.
 
2. Pay your current bills in a timely manner so that your credit history is in good shape before potential lenders start researching your application. This includes car payments, mortgage payments, credit cards, etc.
 
3. Pull your credit reports and review them. Verify that they are accurate and make any corrections necessary.
 
4. Pay down your credit cards and installment loans as you can.
 
5. Prepare several hypothetical budgets to determine what minimum and maximum monthly payments you can afford to live with that will not drastically change your lifestyle.
 
6. Determine the price range of the homes you can afford to look at, and consider the upcoming closing costs and the down payment amount.
 
7. Spend time researching various lenders. Include mortgage companies and banks. Don’t forget to visit rateyourlender.com to read what fellow homebuyers are saying about the lenders and the practices being used to issue today’s mortgages. Keep your eyes on the rates and the types of loans you may qualify for.
 
8. Pay off any collection notes, tax liens, etc. Make sure to get documentation proving these accounts have been paid in full.
 
9. Continue to manage your finances as you normally have.  Sudden changes in spending habits or deposit trends can send up red flags and negatively impact the application process and potentially the approval.  
 
10. Gather and maintain all documentation that will be required for the loan application process.  Keep all paystubs, banking statements, deposit slips, income tax forms and any other financial information close at hand for easy copying and submittal.
 
Remember that potential lenders are looking for fiscally responsible trends in potential borrowers.  Keep excellent financial records and consult a financial counselor if you have any questions about things you can do to further improve your credit rating.