Getting a mortgage: 5 easy and successful steps
Whether you’re a potential homebuyer looking to find your own home or an existing homeowner looking for better terms and/or interest on your mortgage, it’s important to know a little more about the process of getting the best, on the best terms that suits your needs, priorities and situation. Since the majority of people use a mortgage loan to pay for their house, I felt it might be helpful to go over some things to consider from the outset. With that in mind, this article will try to briefly review and look at 5 steps that you might consider following to ensure that this often tense, stressful process and period becomes a little easier and more successful. .
1. Check and review your full credit report: Especially in today’s climate and environment where there is so much identity theft, it’s smart to start with that. First review the accuracy report etc. Then look at the items and report the way the lending institution might. Start by looking at your debt-to-income ratio. The desired maximum for this changes periodically, but if you keep it at about a third (maximum), you’ll probably be somewhat safe. Prepare for about 3 months or more before starting the process and pay off your debt. Don’t wait until the last minute to do it. If you can do this a year or more in advance, even better! Look at the report and think if you were a lender, would you be considered a good risk?
2. Repair: One of the main reasons to start Step One as early as possible is to give you a chance to make any necessary repairs and improve your credit score as much as possible. Be careful to avoid applying for or taking out new credit during this period, as this could damage or lower your credit score!
3. Wait patiently after step one and two: It is optimal to wait a year for best results, but you should always wait at least 3 or more months after you have done the repair and/or repairs and/or paid for it to best position yourself.
4. Stay away from any loan offers etc. during this period: That offer you get at a retail store that will instantly give you an extra discount on your purchase isn’t harmless, but rather can negatively affect your overall credit. Keep your eyes on the target!
5. Be prepared for the down payment: Most lenders will want to know where your down payment and other funds come from. At least 3 or more months in advance, make your likely down payment into an account that you can clearly provide statements for, demonstrating your ownership, etc. Also, keep in mind that most lenders look for borrowers with a significant amount of other assets, etc.
A little preparation and paying attention to some pertinent details will generally make the process smoother and easier and more successful. If you really want and/or need this mortgage, do everything you can to be prepared!
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