Have you ever wanted to buy a home, but you were afraid of a mortgage? Maybe you’re worried about taxes and insurance escrow? Perhaps you don’t know how to find the right mortgage company and what is a good interest rate? All these questions are going through your mind, and this article is going to help you with a few tips to get you moving in the right direction.
To make sure that you get the best rate on your mortgage, examine your credit rating report carefully. Lenders will make you an offer based on your credit score, so if there are any problems on your credit report, make sure to resolve them before you shop for a mortgage.
Your job history must be extensive to qualify for a mortgage. Many lenders need a history of steady work for two years for approving a loan. Switching jobs too often can cause you to be disqualified for a mortgage. If you’re in the process of getting approved for a home loan, make sure you do quit your job during the process.
While you wait for a pre-approved mortgage, do not do tons of shopping. If a lender notices lots of charging activity before your mortgage is a done deal, they could change their mind about lending to you. Hold off on making a big furniture purchase or buying other big ticket items until you have completed the deal.
You will more than likely have to cover a down payment on your mortgage. It’s rare these days that qualifying for a mortgage does not require a down payment. Ask how much the down payment is before you submit your application.
Your mortgage application might get denied in the final stages due to sudden changes to your overall financial standing. Avoid applying for mortgages until you know that your job is secure. You should also avoid changing jobs while you are in the loan process since your loan will depend on what is on your application.
Reducing your debt as much as possible will increase your chances of being approved for a mortgage. If you are not in a good financial situation, meet with a debt consolidation professional to get out of debt as quickly as possible. You do not need to have a zero balance on your credit cards to get a mortgage but being deeply in debt is definitely a red flag.
When considering the cost of your mortgage, also think about property taxes and homeowners insurance costs. Sometimes lenders will factor property taxes and insurance payments into your loan calculations but often they do not. You don’t want to be surprised when the tax office sends a bill and you learn the cost of required insurance.
After reading this beneficial advice, you are on your way to getting a good mortgage. Utilize what you know, and start confidently searching for the mortgage that best fits your needs. When you have found the one, you will know. It feels good to have a good mortgage company on your side.