Potential borrowers often sabotage their own efforts obtaining a mortgage loan. It is important to remember that each lending institution has particular rules and guidelines to qualify for a mortgage loan. Preparation and homework can help you speed the process and save you money.
Here are 5 steps you can take to make sure you are ready to apply for a mortgage:
Many borrowers procrastinate in applying for a mortgage for many reasons such as: fear of being denied, shopping for the perfect deal, not having all their documentation, thinking the process will not take much time. There is nothing more stressful than having a closing date looming with no loan commitment in sight. Starting early does not cost you more and may ultimately save you money.
Get your documentation in order.
Lenders are going to require documentation on income, assets, and other personal information. Be prepared to provide it in a timely fashion. You will be in a stronger position to get the loan you want by being prepared.
Get a copy of your credit report before you apply, particularly if you have any doubt in your mind about how your creditors have viewed the way in which you have managed your financial affairs.
In some instances, borrower’s credit reports may contain erroneous information. While credit reports can be corrected, the process takes time. Knowing exactly what your credit report says may provide an advantage.
Complete the loan application thoroughly.
By giving complete and accurate information early in the process, you will help speed up the process.
Don’t try to change the system.
Work with a mortgage professional that you are comfortable with and can address your needs, concerns, answer your questions and instill confidence. In some instances, the bank or mortgage company, you or the consultant, you are working with simply may not offer a program that can suit your requirement. In other cases, the type of financing being sought is simply not available. Being an informed borrower and working with an experienced mortgage broker or mortgage agent can often be the difference between success and failure.
By John Benson