Tips for Getting a MortgagePosted on Sep 03, 2019
Have you been considering a mortgage recently? Truth be told, there are SO many benefits of obtaining one. Whether it’s to increase space for your loved ones or to build your future retirement portfolio, buying a piece of property is potentially one of the best things you can do to invest in the future. Though the process can be hectic, there’s something rewarding at the end of it all. And believe us when we say, from all the dreaded paperwork to the countless walkability score comparisons, your efforts will not be in vain! When you’re ready to take the leap, check out these tips to help get you approved for a mortgage and into your dream home.
1. Check Your Credit Report
Blemishes on your credit report don’t automatically disqualify you for a mortgage and you don’t need a perfect score, as lenders often take many other factors into consideration when reviewing applicants. Therefore, do your due diligence and review your credit report to ensure there are no errors such as wrong addresses, phone numbers, or accounts. You can get a free credit report once per year from AnnualCreditReport.com or contact credit bureaus directly to formally request that they resolve any errors. Additionally, get your score as high as possible and consider paying down any credit cards below 15% of the credit limit.
2. Shop Around for the Right Lender
It may seem counterintuitive, but if you don’t weigh all your lending options, you aren’t doing yourself any favors. Ultimately, you need to get quotes from other lenders because they won’t all offer the same mortgage rate or closing costs. If you want to negotiate the best deal, a great rule of thumb is to get at least 3 or 4 loan offers before you commit to just one. Keep in mind that if you are a first-time homebuyer, you might also be eligible for certain grants and programs in your local county or city that may assist with down-payment fees. See here for information about our lending services.
3. Save a Little Extra Cash
According to a recent survey by GOBankingRates, 58% of Americans have less than $1000 dollars in their savings account. Typically, lenders want to see at least two months of mortgage payments in reserves and usually will not opt to approve someone if that means depleting their savings in the process. A large saving account is viewed as a compensating factor and could make up for a lower credit score. When attempting to get a mortgage, make sure you have a decent amount of money in your rainy-day fund, especially if you’re credit is not ideal.
There can be so many benefits to getting a mortgage, but oftentimes people talk themselves out of it based on what could go wrong. When you buy a home, you’re in it for the long haul. You’ll have a mortgage payment for 15, 20 or 30 years, so use these tips to set yourself up for success! When you’re ready, you can count on Team Lassen to provide great rates, information and everything in between to help you find the perfect home here in Colorado. Click here to meet our phenomenal team.