It’s no surprise that, in order to enter the property market, you will need to take on a mortgage. Below are some tips to help make your meeting with a mortgage lender a successful one.
Buying a first home isn’t as easy as it used to be, requiring the majority of people to take out a mortgage for the task. This, of course, means meeting with a lender or a mortgage broker to place your application.
If this situation sounds familiar and you are about to meet with a lender or a mortgage broker, Speedy Title and Escrow Services, LLC has prepared the following post which can help you prepare for this meeting and make it a successful one.
The first thing that any lender or broker will do when you sit down at your initial meeting is to pull up your credit score and credit history. This information will give the lender a way to easily see the type of credit you have had in the past, the credit you currently have, and what your repayment habits are like. For the majority of lenders, this is all that is needed to either continue with the appointment or to decline your application. To prevent this from happening to you, before you meet with anybody, order your own copy of your credit report and score and go through it with a fine-toothed comb, looking out for any of the following:
Any of the above false information can greatly impact your credit score for the worse and potentially leave you trying to explain to lender inconsistencies which you don’t know about or understand. Once you have your report and have identified any of the above, investigate them with any relevant credit reporting agencies so that, when the time comes for you to attend a meeting with a lender or broker, the credit information they use is accurate and your own. Before you sign any purchase documents, speak with Speedy Title and Escrow Services, LLC at (586) 739-2233 to learn about the benefits of title insurance in Clinton Township. Available via a one-time payment, title insurance in Clinton Township can provide financial protection to homeowners against a range of issues which can arise post-settlement.
Once you have your credit history cleared up it’s time to pay attention to your current credit and financial situation. Start with a budget which includes all of your outgoing expenses matched against your income streams. If you plan your finances to accommodate for future expenses, be sure to include these as prorated amounts. By showing this to your lender, you can display a clear picture of your day-to-day or monthly expenditure and spending habits, helping them to further assess your application. As you create this, keep in mind that your lender doesn’t want to see the type of groceries you buy or the amount you spend at the gas station, instead, keep it high level with titles. When you have completed your budget, consider including supporting information:
Each time that you attend a lender and they check your credit record, it will be logged and can lower your score. This is made even worse each time that an application is declined. For this reason, it’s important that you attend your meeting confident that you are in a good financial position and are likely to be approved. With this in mind, consider your current situations and whether or not it is worth waiting. As an example, if you are about to receive a bonus which will pay off two of your store cards, then consider waiting. This will remove the need for you to show that you have two debts, keeping in mind that your lender won’t consider that you will ‘soon pay them off’. They only care about what you have and what you don’t have. If, on the other hand, you don’t have any outstanding debts and will soon be receiving a bonus, you could consider waiting to include this bonus in your deposit amount, further improving your chances of approval.
Before you sign any purchase documents it’s important that you complete your due diligence, which includes obtaining a thorough title search and subsequent policy for title insurance in Clinton Township. To find out more about how title insurance in Clinton Township can provide financial protection for your home ownership, speak with a friendly expert at Speedy Title and Escrow Services, LLC by calling (586) 739-2233. Available only prior to purchase and for a one-time fee, title insurance in Clinton Township is an item not to be skipped over during the home buying process.