The home mortgage process is very complicated and detailed. Many people get scared and intimidated to tackle the loan process, but it doesn’t have to be that way. Below are four tips to help you get a Mortgage In Ankeny.
Credit Score: Before applying to get pre-approved or officialy approved for a mortgage, you should know your credit score. You can get a copy of your credit score within minutes, and for only a few dollars, online. It is quite surprising how many home buyers do not know anything about their credit report or score. Going in to fill out your mortgage loan documents cold can cause you to receive shocking news, being denied, or receiving high interest rates that you cannot afford. On average, most lenders require credit scores of at least 680 for traditional loans. Other items from your credit report that affect your mortgage approval is missed or late payments, frequent lateness, or other negative items.
Cash: Many people don’t consider the amount of cash they will need to close on their Mortgage Ankeny, for items such as closing costs and a down payment. Showing up to a lender with no money to cover these costs or the down payment will get your quickly denied for a loan. The criteria for a down payment changes from lender to lender, but on average you will need at least 3.5% to put down. The bigger the down payment you are able to put towards your loan, the lower your monthly payment and interest rate will be.
Don’t Change Jobs: Your job situation cannot change while you are going through the mortgage loan process. There is the possibility you will lose out on getting your loan if you quit or lose your job before you close on your loan.
Debt: You don’t need to be debt free to qualify for a Mortgage Ankeny, but the less debt you have is better. The amount of debt you have is part of the deciding factor if you get a mortgage, as well as how much a lender is willing to loan you.
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