Crucial Checklist for New Homebuyers: Get the Best Deal
Friday, September 18, 2015, 6:00 AM | Leave Comment
If you are willing to get a mortgage, it is crucial to make yourself an appealing borrower to the lenders you apply to. It is not exactly the same to be approved for a loan and to actually get the home you want.
The competitors can just beat you out while you will have to move into the lesser property down the street.
So the following tips will help you to get the best odds of being approved for a mortgage you need and deserve.
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Check Your Credit Score
Your credit score is one the most important issues for the lenders to decide if you can really pay them back. Essentially perfect credit history gives you a chance to get a mortgage at a good rate.
Thus pulling your free annual credit report before applying to the lender can help you to get a clear idea of what deal you can actually count on.
So just check the total debt and if there are any late payments, account age, collections, delinquent accounts to be sure that there are no mistakes.
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Make Sure That Your Paperwork Is in Order
Applying for a mortgage is a rather extensive process. You will need to prove your debts, savings and income.
Thus having all of the needed documents in order can make the application process faster. So prepare you pay stubs or tax return ahead.
Besides, don’t forget to have your loan, credit card and bank statements for the past several months as well as a profit and loss statement in case you are self-employed.
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Make Decision on a Down Payment
It is really important to prove your lender that you can afford the mortgage you apply for, so bringing an essential sum of money to the process shows your serious intention to buy a home.
Besides, this way you prove that you can save money and pay interest on your loan. In most cases 20% down on a new home is a standard rate, although you are better to figure out the final amount that is appropriate for you as a borrower and your lender to see that you are a reliable person.
Often it’s a good idea to consider bumping the down payment to 25-30%, if you can really afford this.
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Get a Clear Idea on Lenders and Loans
You need to look closely at the fine print on the mortgages and the options your lender perform. If you find the very right mortgage for you, it will help you to qualify for tax deductions and build your net wealth.
Find a reliable lender that will cooperate with you. If the offered terms don’t seem to work in your favor, don’t give up and take just more time to improve your credit or shop around for the other lender.
The more you know about the mortgage application process, the less pain you get negotiating with the lender. Just take your time to prepare all you need to get the home you want and this will definitely put you in a better financial position to start the game.
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