Getting approved for a mortgage has become increasingly difficult in recent years due to the state of the real estate market. It is estimated that lending standards will continue to remain strict in 2012, while the process of getting approved for a loan may be difficult it is not impossible for you to obtain a mortgage at an acceptable rate. If you are prepared and know what lenders are looking for you will have no trouble acquiring a loan.
- Know Your Credit Score – Good credit is one of the most important things needed to acquire a mortgage. Request copies of your credit report from the three credit reporting agencies. If you notice any errors or outstanding balances you should take care of those items before applying for a home loan.
- Plan Ahead – Every mortgage lender requires certain documents when applying for a mortgage. Gathering these documents now can help save you valuable time later. You will need to have your last two pay stubs, w-2’s, income tax returns and bank statements.
- Create Your Budget – Don’t leave your budget up to your mortgage broker. Although you may be approved for a high loan that doesn’t mean you need to buy a home at that price range. You know better than anyone how much you can realistically afford.
- Shop Around – When looking for a mortgage it is just as important to find the right loan as it is to find the right house. You should take into consideration closing costs, points and the type of loan you are getting. These are all important things to consider when choosing which bank to go with.
- Don’t Procrastinate – Once you have submitted your loan application to a lender you have a short amount of time to supply any other documents necessary to approve your loan. If you take too long to hand over these documents you may end up blowing the deal. Whenever a bank requests something from you supply it as soon as you can.
- Maintain Your Credit – Once you have been approved for a home loan you should still keep your credit rating at the same level. To do this do not apply for any new credit cards or lines of credit, these can affect your credit and may cause the lender to change their mind about your loan.
- Consider Refinancing Without The Closing Costs – To save money when refinancing your home loan you should consider the option of refinancing without closing costs. This will allow you save money on closing costs while adding a few extra dollars to your monthly payment. This is a great option for those who may not be able to come up with money required at closing.
These are only a few steps you can take to help save money during the course of acquiring a home loan. If you are considering applying for a home loan these are some of the most important things you can do to help improve your odds of being approved.