The housing market is finally enjoying an upswing. Not only are interest rates still low, but there are ample homes to choose from. That's why right now is that perfect time to purchase your first home. If you're nervous about the process, that's understandable. Buying a home can be stressful, to say the least. A lot of work goes into buying your first home. You're going to need an experienced team now that you're looking for a home. Two of the most important members you can add to your team will be your real estate agent and your mortgage broker. Your real estate agent will help you find the perfect house, while your mortgage broker will help you obtain the loan for your home. Here are three steps you can take to avoid costly mistakes when working with your mortgage broker.
Be Prepared for the Process
When you decide to sit down with a mortgage broker, like those at Cornerstone Residential Mortgage, be prepared for the process. Your broker is going to require a great deal of paperwork from you, which you should be ready to provide. When you go for your appointment with your broker, be sure to have copies of your bank statements, tax returns, and pay stubs. Being prepared with these documents will help speed up the process.
List All Your Financial Obligations
When it comes to applying for a home mortgage, it's important that you list all of your financial obligations. Your mortgage broker is going to be pouring over your documents with a magnifying glass. They'll want to make sure that you can afford the loan that you're about to receive. One mistake could either send your loan back to square one, or disqualify you. If that happens, you'll need to begin the application process all over again. To avoid those complications, be sure that your application includes all your financial obligations, including those that you've entered into with other people, such as co-signing on loans.
Avoid Changes to Your Credit
When you're applying for a home loan, it's crucial that your credit remain consistent. Relying too heavily on your credit cards could make it look like you can't afford a new home loan, while adding new financial obligations to your credit could elevate your income/debt ratio. Unfortunately, if that happens, you could find yourself pushed into a lower price range, which could drastically reduce the number of housing choices you have. To make sure you're not faced with last minute credit issues, be sure to avoid any increases to your credit limits. It's also important that you avoid overusing your credit cards, especially during the application process for your mortgage.
Share1 May 2018
I always wanted to buy my own home and after saving enough money for a down payment, I decided that it was time. Before I started looking at houses, I talked with a loan officer about financing. I wanted to know how much money I could borrow so I could look at houses in that price range. I was very happy after my meeting at the loan company and I was ready to start house hunting. My name is Jarod Spangler and I'm now a homeowner. If you have the dream of owning your own home, I think you'll find my blog of help to you. I've documented my journey of saving money, securing a loan and purchasing a house. To help you become a homeowner too, I'm offering advice and tips of things that I've learned along the way.
