Owning your own home is something to be proud of. The process of getting a home does require that most people take out a mortgage. This process can seem quite confusing and lengthy. This article will show you how to get a great mortgage today.
To make your application for a mortgage fast and easy, make electronic copies of your last two pay checks, two recent bank statements, W2s, and tax information. Lenders will ask for all of this information to go with the application and having them on hand in electronic format makes it easy to supply this information.
Get a pre-approval letter for your mortgage loan. A pre-approved mortgage loan normally makes the entire process move along more smoothly. It also helps because you know how much you can afford to spend. Your pre-approval letter will also include the interest rate you will be paying so you will have a good idea what your monthly payment will be before you make an offer.
Keep the lines of communication open with your lender, no matter how bad your financial situation may get. Mortgage brokers will usually negotiate new terms with you, rather than allowing your home to go into foreclosure. Your lender can help you understand all the available options.
Get a copy of your credit score before you apply for a mortgage. It is best to know where you stand before you complete an application for a mortgage. You should check your credit even if you are sure you have a good score since identity theft or mistakes can occur.
If your home is not worth as much as you owe, and you have tried to refinance to no avail, try again. There are programs, such as HARP, that allow people in your situation to refinance. Lenders are now more likely to consider a Home Affordable Refinance Program loan. If this lender isn’t able to work on a loan with you, you can find a lender who is.
Get mortgage loan estimates from at least three different mortgage lenders and three different banks. By shopping around, you may get a lower interest rate, pay fewer points and save money on closing costs. It’s almost always preferable to get a fixed interest rate. With variable rates, you may not know from month to month what your mortgage payment will be.
Make sure that all of your loans and other payments are up to date before you apply for a mortgage. Every delinquency you have is going to impact your credit score, so it is best to pay things off and have a solid payment history before you contact any lenders.
Lenders look at your debt-to-income ratio in order to determine if you qualify for a loan. If your total debt is over a certain percentage of your income, you may have trouble qualifying for a loan. Therefore, reduce your debt by paying off your credit cards as much as you can.
If you are looking to own your home, a home mortgage is generally needed. There is quite a bit you have to take into account when thinking of a home loan, so it’s a good idea to become informed before you buy a home. Use what you just read and do more research on home mortgages.