1. Keep your debt low and the amount of credit you're using under 20 percent of what's available to you. Always paying your bills on time is one of the best ways to maintain healthy credit.
2. Take your time to carefully fill out the loan application as accurately as possible, trying to hide credit problems or holding back requested documents can only work against an applicant by delaying the process and possibly even preventing a mortgage approval.
3. If you earn overtime pay or a bonus, be ready to provide documentation for extra income. Make sure you document all your assets, including a 401(k), an IRA, CDs and savings, even if you won't be using those funds for the home purchase.
4. A large down payment can make a big difference in whether your home loan application succeeds. The more you can contribute to the down payment, the more attractive you'll be to lenders. Contributions from family members or friends for down payment money are allowed by most loan programs. Lenders typically require such contributions to be accompanied by a gift letter asserting you won't have to repay the money.
5. Don't focus solely on getting the lowest rate. Look at the discount points, origination fees, underwriting fees and document preparation fees when comparing loans. You also need to understand how your loan works, especially if it has an adjustable rate. Evaluate your overall budget, monthly payments and fees. A home loan is not just about getting the best deal -- it's about getting the right mortgage with no surprises so you can be a successful homeowner. Everyone should calculate their own debt-to-income ratio, look at the full cost of homeownership and determine how much they can comfortably afford to spend each month.
My focus is to best understand the goals and visions of my clients, ensuring
all decisions are made with a wealth of information and the necessary tools for
a successful, rewarding experience.
I have found my Slice of Heaven I look
forward to you finding yours! KathyDecker@exitkingrealtygroup.com Have Questions? Call Me 941-544-7270
Author:Kathy Toonder Phone: 941-544-7270 Dated: January 9th 2014 Views: 944 About Kathy: I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s...
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