You’ve been renting for several years now and all you have to show for it is a shoebox full or receipts (or a computer folder). You are thinking that maybe it is time to invest in a home of your own. You have heard of the benefits of home ownership, but do you have everything you need to obtain a mortgage? Let’s find out.
Before Talking to a Lender
You want to of course shop around and educate yourself on the types of loans you may qualify for. There are many home mortgage loans to choose from. You’ll want to ask questions such as what the closing costs are and points on the loan. If you aren’t sure what that means, look it up and go into the process with some knowledge on your side.
You will want to pull your credit report and run through it with a fine tooth-comb. If there are any errors on your credit report you should contact the creditor or the credit bureau to take steps to have it corrected. If there are delinquencies on your report your FICO score will be affected. This doesn’t mean you won’t qualify for a mortgage loan, but your rates will be much higher.
You also want to give your employer notice that they will be receiving a form to verify employment and the time at that job. Having these things in place will be a great help when sitting down with the loan officer.
Have These Documents Ready
Having the following documents in your possession will make the application process go much smoother for you and the loan officer you choose:
Applying for a home loan can be a lengthy and complicated process, but if you plan ahead a lot of that aggravation will be eliminated.