Local Records Office – Before You Get A Mortgage Read This
LOCAL RECORDS OFFICE: You are finally taking the big leap, you are getting the house of your dreams but you cant stop thinking of the “mortgage”. Preparing for a mortgage is something every buyer should be thinking about well in advance of making a home purchase says, Local Records Office. One of the things that first time homebuyers will often ask me is what they should do first in the home buying process. My answer is always the same, which is, go out and get pre-approved for a mortgage. Preparing to get a mortgage however is something that many buyers don’t often think about. Taking out a mortgage loan can be one of the most important parts of the home buying process.
Mortgage and Homebuyers
Mortgage, mortgage and more mortgages. The amount that a person is approved for will often dictate how much they have to spend on the house. The interest rate will determine how much a borrower will be paying for the next fifteen to thirty years if the mortgage is kept that long.
With these reasons in mind, it is a good idea to prepare for the upcoming mortgage loan before walking into the bank and asking for approval. Here are some steps to help make sure that the financial house is in order before taking out a mortgage loan. Preparing for getting a mortgage is something all homebuyers should do! When buying a home for the first time, learning how to prepare to get a mortgage is one of the top first time homebuyer tips. It can make a significant difference not only in the rate you procure but to actually get the loan!
Making sure your financial cards are in order is a big part of how to prepare to get a mortgage. Consider for a moment that the Federal Trade Commission estimates that as many as one in five people have a significant error on their credit reports. Next add in the idea that just ten points higher or lower on a credit score could potentially mean a difference of tens of thousands of dollars in interest paid over the lifetime of a mortgage.
Now it should be obvious why it is critical to check a credit report before stepping foot in a bank. Similarly, make sure that there are no recent delinquencies or collection notices on the account. If such problems were recently resolved, wait several months before applying for a mortgage.
This step should really be completed several months before a person is ready to apply for a mortgage. If errors are discovered it can be a long and frustrating process to begin correcting them. Considering the potential savings that can be made by raising a score just a few points, however, it is worth it to make sure that the credit report is accurate. Making sure your credit history is accurate should be an essential part of preparing for getting a mortgage.
Establish Income and Assets
Before a bank or other lending agent approves an individual for a loan, they want to be sure that the person is going to be able to pay the loan back in full. For their own reassurance, the lending officer will typically examine two main areas. The first will be the monthly income of the potential borrower. Those interested in taking out a loan should avoid job-hopping in the months leading up to the loan application process. Holding down a job for several months, and preferably several years, before applying will give the lending institution a good idea of how much money a person has that can potentially go towards repaying the loan.