If you spend the majority of your spare time looking online for dream properties then it’s also likely that, once you find a place which has everything you need, you will be visiting with a mortgage broker or lender to try to find your dream mortgage rate. However, while the act of dinging your home may be pleasant and relaxing, there are some important tips to keep in mind to help make your first meeting with a mortgage broker or lender go smoothly.
No Excuses or Confused Looks
Don’t let the first time that you see a problem with your credit history and rating be when you and your mortgage lender are looking at their computer monitor. This leads to nothing but you making excuses and trying to figure out any mistakes which are on your report. Instead, before your meeting, obtain your own copy of your credit report and look for the following:
- Any instances where your name is spelled incorrectly
- Any addresses which you have never lived at or used
- An application for credit which you never made
- Any outstanding debts which are not yours
- Any outstanding payments which have been made
If you can see any of the above inconsistencies then address them with your credit reporting agency immediately and have the matter cleared before you meet with your lender.
Understand Where You Stand
Just because you want a mortgage doesn’t mean that you are in right financial position to take one on. For this reason, it’s important that you have a solid understanding of your current financial position and are able to present it clearly to your mortgage lender.
The best place to start is with a budget so that you can get a clear picture of your incoming income streams and your outgoing expenses. When creating your budget, it’s important to be thorough but not too tough.
For example, your lender doesn’t want to know about how often you save money using the Groupon Coupons page for Nine West each month, but they will want to know how you spend on your current financial obligations and bills.
To help you show your financial position, take along the following documents:
- Statements which verify your ability to save consistently
- Pay stubs and pay receipt/confirmation
- Employer letters outlining your current employment status and expected contract length (if any)
- Any statements which confirm cleared debt
- Statements which show a consistent level of repayments towards outstanding debts
It’s important to remember that a mortgage is a large financial obligation, and isn’t one which you should take on unless you are in the right financial position to do so.
If, after getting a better understanding of your current situation through the tips in this article, you realize that now might not be the best time to take on a mortgage, don’t be afraid to wait until you are in a better financial position.
While nobody will ever tell you that the mortgage application process is easy, it isn’t an impossible task, and just requires you to know a few tips, like the ones presented in the article above.