Mortgage Loan

Preparing to Apply for a Home Loan – Mortgage Moment

It takes time and effort to apply for a mortgage. You could make things easier on yourself by doing a little advance work. If you can answer four basic questions before your first meeting with a lender, you will ahead of the game. What does your credit say about you? Find out. Hit the three national credit bureaus, Trans Union, Equifax and Experian to send you your credit report. Get all three because the information can very from one to another. Reports cost about $10, but in some cases you can get them for free. You can even request reports online. Check your reports for possible reporting mistakes and fraud. If you find a problem, get right on it. It can take weeks to get a credit report corrected. If you suspect problems with your credit, consider paying for a mortgage company report that includes information from all three credit bureaus. This could be a huge time saver. Mortgage companies work with other companies that know how to clear up credit problems in a matter of hours. A mortgage company report cost about $60. How much do you owe? Your lender will wanna know exactly how much money you owe. So put together a list of all your debts, along with your creditors’ names, telephone numbers, account numbers and balances. Try to make your list complete and accurate. If a lender keeps finding little surprises, it’s going to slow down your loan approval. How much money can you put down? The more money you can put down, the lower your monthly payments will be. But before you can decide on the amount of your down payment, you need to consider closing costs and all the other expenses that come with buying a home. These can include inspections, insurance and loan processing fees. Your lender will also expect you to have a two-month cushion in your bank account after you’ve paid your closing costs. How much can you realistically afford? When you do apply for your loan, make sure your lender understands that the total monthly amount you can pay includes tax and insurance, not just your loan payment. Remember to factor in the amount you’ll have to spend on monthly utilities, maintenance and repairs. The other side of this equation is your income. Your lender will want to see documents that support your stated income, so start collecting them now. These include checking and savings statements for the past three to six months, bonus checks and written promises, tax returns for the past two years, proof of other income, such as child support, employment contracts and paycheck stubs. You can expect that first meeting to take up to two hours, so if you have kids, make arrangements to leave them with the sitter.

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1 comment

  1. cool video keep it up


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