Friday, September 7, 2012

5 Tips to Prepare for a Home Loan


People often ask when the best time to buy a house is. The answer is: right now. Current mortgage rates are the lowest they’ve been in many years. Though it is not as easy to quality for a home loan now as it was several years ago, borrowers who are prepared and have the professional support of a quality lender, improve their position considerably. This blog discusses the best way to prepare for a mortgage loan, so when you are ready for home ownership, you have a better chance of successful funding.

These tips will help you prepare to obtain a mortgage:

·       Have an idea of how much you can afford - though this can change once you consult with your qualified loan officer, it helps to have a starting point. Start by completing a loan application form for us so a loan officer has their specific financial information and can run qualifying numbers
·       Know your credit scores - it is easy to obtain a credit report.  This will give you scores and show any areas of concern which you may need to address
·       Know what documentation you are going to need. Our application process at Intercoastal Mortgage Company is very easy and streamlined, your loan officer will tell you what you will need to produce as you move through to closing your loan. Examples of documentation would be copies of pay stubs, W-2 forms, and bank statements.
·       Have your documents ready when we need them - when you find the house you want, you don’t want your processing delayed while you search for documents.
·       A little education can go a long way - know the current interest rates, learn how closing costs, points, and different types of loans effect the terms. We help our clients put all of this in perspective to make the best choice for their individual situation.

Good credit is the key to obtaining a mortgage with favorable terms in this lending market. Get copies of your credit scores and credit history and study the reports carefully to make sure there are no errors or issues to resolve. Make sure you know your budget, and be prepared for unexpected expenses.  We will help you with any questions and assist you in this process for the best possible outcome. Contact me and you can begin the process of home ownership.

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