The Steps To Getting A Mortgage
Step One:
Do research - you are doing that right now. You might check out the overview of the mortgage process if you've not seen that yet.
Getting ready to buy - preparing your credit and bank account.
- Confirming that you have enough credit and the correct credit profile
is important 12-18 months before you buy. Don't worry if you'd like to get
started more quickly - just be sure to talk with your mortgage consultant
and have a current credit report pulled so you know where you stand. Nontraditional
credit (if you don't have traditional debts (e.g., credit cards, car loan,
etc.)) is an option that can be evaluated with the help of your mortgage
consultant.
- Stop looking for new consumer credit 12 months before you plan on buying
(Don't respond to any credit card offers, etc.).
- Remember, all debt that you are carrying will be looked at when evaluating
your mortgage options. If you can wait to buy a new car, etc., you will
help your ratios when it comes to qualifying for your new home.
- Saving up a minimum of 3% - 5% of the purchase price depending on loan
type will ensure that you have options when it comes to getting your new
mortgage. Down payment assistance and
zero down programs may be an option depending on your credit and job
history. Ask your mortgage consultant if you qualify for these programs
as you research your options.
- Paying off your revolving debt (credit cards) in advance of looking into a mortgage can also help (can improve your ratios). Ask your mortgage consultant about your particular situation before you pay anything off so you can make smart decisions about how to allocate your money.
Credit information:
- Your credit history is a function of how you've taken care of the credit
that has been issued to you.
- Ask yourself the following questions as you evaluate your credit history:
- Have I paid all my bills on time for the last year, two years, four
years?
- Is there a bankruptcy or foreclosure in my history?
- Have I paid my current mortgage or rent on time for the past two years?
- It is important to know:
- Time heals credit.
- The frequency of inquiries and past dues on your credit record
has a negative impact on your credit score - as does the proximity
to today (more recent and frequent hurt more).
- There are ways to work on healing your credit without just letting time pass. Talk with your mortgage consultant for specific ideas about how to work on your credit.
- Time heals credit.
- Have I paid all my bills on time for the last year, two years, four
years?
- If your answers don't appear to be the "correct" answers, don't
despair, there may be a home loan solution available for you.
- Please talk with your mortgage consultant so that your credit record can
be pulled and explained.
Last updated:
Copyright ©2002-2004 iHomeLoanInfo.com, All Rights
Reserved.
Copyright and Terms
of Use
