Understand your rights, your role and the lender's role in the process.
This way you can get the best mortgage option. The following are the elements you need to qualify for that important mortgage...
A borrower's credit history has always been important when it comes to getting home financing.
As a borrower, even if your credit score is at 620 you cannot have any derogatory payments or information on your credit history within the last 24 months.
You need to offer your personal information like, name, address,
This might include your W-2 forms, last paychecks and taxing filing
This include your income tax returns and any written statement from lenders
Loan Officer Is Your Friend
He is your friend throughout the process so pay attention to his requests.
Welcome to Exp. Business
Finding a mortgage is not as hard as you think,
so long as you're familiar with the process and understand how to get through the documentation. This straightforward guide offers you insight into getting your first mortgage:
1. The Application Process
Shop around for a mortgage company online and fill out the online application form. You need to offer your personal information like, name, address, birth date and employment history and salary. When applying, list your pretax salary and not your take-home pay.
2. Offer Verification
When applying, you need to keep your documentation on hand. This might include your W-2 forms, last paychecks and taxing filing information. You also need to provide copies of your ID and Social Security card.
3. Additional Information
If you have extenuating circumstance that could include being self-employed, past credit history problems, you'll need to keep additional financial information on hand. This might include your income tax returns and any written statement from lenders or the credit bureau about past credit issues. Be sure to contact the lender and ask about the additional information needed.
4. A Loan Officer Is Your Friend
The loan officer's job is not to prevent you from getting a mortgage; to the contrary his purpose is to assist you in obtaining approval. He is your friend throughout the process so pay attention to his requests.
Lock Your Rate In
Once you've provided your financials and have been approved. Make sure the rate is locked in; meaning that this is the amount you are approved for and the interest rate you are given for a specific amount of time.
The Wait Time
Your financial information is likely to go from hand-to-hand, and department to department within the lending institution. This means it could take time for the loan officer to approve the mortgage. However, once the underwriter has everything he needs he'll offer an "approval" or an "approval with conditions" mortgage.
The Clear to Close
Once approved for a mortgage, this doesn't mean you have the home yet. This only means that the mortgage company and the attorneys are finalizing the documentation for closing.
This is the moment you are given the keys to your new home. You sign a lot of contracts, the seller signs off on the title. Now you are ready to move in!