Things You Need to Know Before You Get a Mortgage
Buying a house and taking on a mortgage is a big deal, so you need to have all of the right information before jumping into an investment of this magnitude.
The following information will come in handy when you’re trying to obtain a mortgage and help you make the process smoother, faster and easier, so keep the following in mind before you get a mortgage:
- Have the necessary documents ready to go. You will need bank statements, pay stubs from your place of work and tax filings, to name a few. Find out in advance which documents are required so that you can have them ready to go when the time comes to meet with your lender.
- Be realistic about how much you can spend; don’t expect to borrow more than you can handle. The amount you’re applying for must be relative to your income so that the lender knows that you can actually handle your monthly mortgage payments. Lenders have a process to help you determine how much you can spend and it comes down to percentages. They will take a look at your gross income along with other payments you are responsible for, such as a car loan, to determine how much you can borrow.
- Work on your credit score before applying for a mortgage. If you have poor credit, you won’t be considered an ideal candidate, which can hurt your chances of getting approved. Don’t take out any new loans or open any new accounts when applying for a mortgage and try to pay off any balances you are able to, as this will help raise your credit score.
- This ties into your credit score, but the importance of paying off any debts cannot be emphasized enough. Lenders do not want to see candidates who already have other large loans and it will affect your credibility as well as the amount you will be eligible to borrow. Do your best to pay off any credit card debts or other loans you may have.
- Do not make any big purchases, even after you have been approved. A mortgage company will continue monitoring your finances even after approval, so be smart and don’t jump into any additional debt. This means you may have to wait to go furniture shopping until after the mortgage becomes final so that you don’t sabotage your loan.
SAN Mortgages can provide you with even more information regarding this matter and help with any mortgage related inquiry you may have, whether its rates, debt consolidation or refinancing.
We have access to a vast array of mortgage options and our highly-trained mortgage specialists can find the perfect fit for you. Contact us today, we’re always here to chat about your mortgage needs.