6 Steps That Will Help you Through the Mortgage Process
It’s good to know the mortgage process, If you are looking to buy a new house or condo or if you are looking to refinance your existing mortgage there are some factors that can have an effect on what your interest rate will be and thereby ultimately affect what your monthly payment will be.
Check your credit score and raise it if you can
Make sure you know your credit score and make sure you look into reasons why the score may not be as high as you though it could be.
Work with your lender to improve your credit score.
Lower your short term debt
Make sure that you do not carry too much credit card debt, car loans and other short term debt obligations.
Lenders look at debt to income ratios so improving this ratio will definitely help you in the loan process.
Get financially organized
As you start the loan process the lender will ask you’re for several documents which might include your W2s, tax returns, bank statements, loan statements as well as investment and retirement statements.
Have enough cash ready
Buying a new home will require some sort of down payment and there can be costs associated with obtaining the loan so make sure you have enough excess short term liquid savings available to get you through the whole process.
Decide on type of loan
There are many types of loans available ranging from 30 year fixed mortgage all the way to 5 year adjustable mortgages.
Learn about the pros and cons of each available mortgage and make sure you find out which loan will fit into your specific situation.
Understand the lock in process
Make sure you talk to your lender and have the lender explain to you exactly how the locking of the interest rate on your loan works.
There are often many options available when you decide on locking in your final rate.
Written by CreativeNurse Team
2016-21528 Exp. 4/18