Getting Prepared For A Home Loan

I get asked all the time where does one start in the home buying process. Usually I give that person the breakdown of the whole process from start to finish. But where do you start? You start by getting prepared to get a mortgage.

Preparation to get a mortgage should start well in advance of making a home purchase. Many buyers overlook this step in the process. The amount of pre approval will dictate how much can be spent on a house. The interest rate determines how much a buyer will be paying to the mortgage company until the mortgage is paid off. Preparation can make a huge difference in the rate and loan amount.

One way to prepare for a home loan is to check your credit report and correct any mistakes. Having a good credit score plays a huge role in getting pre approved for a loan. A mortgage company must make sure you are a safe risk to take. Not only is good credit important, but having no recent delinquencies or collection notices is as well. If one has had these recent problems, they should wait several months before they apply for a mortgage. Consider trying to raise your score, this will potentially save you money.

Another way to prepare for a mortgage loan is to establish your income and assets. During the time leading up to getting a loan or the purchase of a home, make sure not to make any big purchases. Also make sure you do not have a change in job. The mortgage company wants to make sure that the person they lend money to will be able to pay the loan back in full.

The last way to prepare for a mortgage loan is to focus on eliminating debt. Most times people do not consider this when thinking about getting a mortgage. One must take into account where they stand with other financial obligations. Banks want to make sure that the debt won't cause problems with monthly income.

These are some tips on how to prepare for a mortgage loan. If you or anyone you know has any questions about this process, I would love to be of assistance. Please give me a call at 317-650-5898 or email me at ermusleh@gmail.com