In the previous blog post, we discussed what you will need in order to qualify for a mortgage in today’s market. Now let’s talk about the necessary steps you should be taking in order to be prepared.
Your Credit History and Credit Score>
Your mortgage mender will obtain a credit report. You should know what is on that report beforehand. You can get a copy of your credit score from a number of locations. There are online companies (beware, yes I am paranoid). Also each of the three major credit bureaus are required, by law, to provide you with a copy of your most recent credit report upon request. Examine the credit report carefully. If there are any errors, contact the credit bureau to rectify the incorrect information. If your credit score is low, there are possible steps you can take to increase your score.
Gather Your Paperwork>
Your lender will require a lot of documentation. It’s time to start gathering it all together.
You’ll be required to supply copies of:
Tax Returns
Pay Stubs
Bank Statements:
Brokerage Account Statements
And more…
Your mender will tell you what they need. Supply what they ask for the first time to ease the process.
Consult With Your Lender>
Discuss your income, expenses, debts and financial goals. This can help you identify the type and the amount of the mortgage you will be applying for.
Get Pre-Approved>
Your loan officer will be able to supply a Pre-Approval letter. This is important since it will tell the seller of your dream house that you are indeed able to obtain the financing you’ll need in order to purchase your piece of The America Dream.
Don’t Forget About Closing Costs>
Yes – I know you may have had great difficulties saving the necessary down payment. But you’ll also have closing costs. Closing costs can easily be $8000 or more. If you don’t have the closing costs saved in addition to the down payment, speak with your Realtor. It may be possible to have the seller pay the closing costs for you.