Things To Know Before Applying For A Mortgage: How To Get Prepared Before You Start
The moment is among you and you are looking to purchase your first home. It may be as a single man or it may be as a family man, but either way before you even start the process with the bank or mortgage lender, there are some things to do in preparation before the initial procedures begin. Here are some things to know before applying for a mortgage and tips that can help the whole thing run a lot smoother.
1. Get Your Papers Organized. When applying for a home loan, the paper work is ridiculously large. They will ask you for everything from ALL previous bank statements (maybe dating back up to six months), employment history, phone numbers, names, addresses, and paystubs, etc. If you have all this information gathered and ready before you even begin, they will appreciate it and your time working with them will go a lot quicker.
2. Check, Fix, and Know Your Credit Score. Knowing those three dirty digits will help you fight the battle. Months beforehand, check your credit score and assess what isn’t correct on your rate sheet. If there are any doubts in your mind that something is right, dispute it; you’d be shocked what they will delete just because you fight it. Work on getting your credit score as high as you can before applying, this will lower your interest rates and boost your chances of getting the loan to be approved.
3. Work History. Many people are shocked to know that most lenders and banks will only approve you or process your loan request if you have had a stable job for two years or more. Anything under that is considered “high risk” and they will slam the door in your face. This isn’t ALWAYS the case however. If you just started a good career path and your past work history was solid, you will be okay. Any secondary jobs or side jobs you hold that don’t have a stable income stream or having not held for two years will not be used in this process. Even if you make up to $1,000 a month extra on odd jobs, they won’t count it if it isn’t credible.
4. Know Your Limits. Everyone is better off when they do research of their own first. So before you even start looking for homes with a realtor (let alone, applying for a mortgage) there are some things you can check by yourself. With plenty of internet resources available to you, it is easy to find out a ball park number of what you can afford. There are mortgage calculators designed to help you know your limits. Once you figure that out, scour the market for affordable homes, good interest rates, whether you want to go through a mortgage lender or bank, and much more.
Moral of the story? The more prepared you are, the better chances you have of owning your first home. Applying for a mortgage is a daunting and stressful task and only YOU yourself can make it easier. Arm yourself with knowledge and organized files and you’ll be well on your way to getting approved for the house of your dreams.
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About the author: Jordan Sarah Weatherhead
Jordan Sarah is a professional music journalist and poet; she is also the founder of Wet Ink Writing Services and www.storybrookellc.com. Her book "Naked Truth" is also available for purchase through her website or www.amazon.com!