Preparing for a Mortgage Application in Five Easy Steps

Mortgage applications can be as time-consuming as they are stressful. As one of the tedious aspects of home ownership, new mortgage applicants can reduce the stress of applying and becoming approved for a mortgage in five simple steps.

Check Your Credit Score
The credit score is one of the basic aspects that the mortgage broker or financial institution is going to base the approval on. Get a copy of the credit score before applying for a mortgage to ensure no mistakes are reported. Mistakes can damage the credit score and be grounds for a denial.
Increase your Credit Score
Increasing your credit score to increase the chances of being approved for a mortgage is not going to happen overnight. Spend six to eighteen months reducing the debt and working with creditors to fix negative remarks on the score. Ensure all monthly bills are paid on time and the score will gradually increase.
Know What You Can Afford
There is the amount that the bank is going to offer clients, and then there is the number that homeowners are able to afford. Work through the budget to find the amount that you can afford when it comes to buying the home – and stay under this number while shopping for a mortgage.
Have the Paperwork Ready
The paperwork that is going to be required for a mortgage includes three months of paycheck stubs from the employer, current identification and information regarding the amount of current debt. Having this information available can expedite the mortgage application process.
Learn about the process of applying for a mortgage. Research the rates being offered and compare the base rates of financial institutions, mortgage brokers and credit unions. Comparing the rates and understanding how a mortgage works can ensure the best rate and terms are being chosen when it comes time to purchase the home.

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