6 Steps to Getting a Better Mortgage Loan
Want to get the best mortgage deal for buying a new home?
You’ve heard its tougher to get a mortgage to buy a home today but there is financing available. Even though it may be more challenging to get a home loan today, with a little preparation you can ensure you get a great deal and perhaps even more money that you anticipated.
Here’s how to prepare yourself to get the best possible financing deal in 6 steps:
1. Get Your Credit in Order
Smart home buyers begin getting their credit in order months in advance of even going on the home shopping circuit. Check your credit, address negative items with creditors and the credit bureaus and work on building your credit score. This is also the time to begin getting all of your paperwork together so that you can get an accurate mortgage pre-qualification.
2. Improve Your Mortgage IQ
Remember the odds are you are going to have this mortgage for quite a few years so take your time to find out more about what mortgage options are available today and which is really the best type of loan for you and your goals.
3. Research What Other Programs May be Beneficial
Are there down payment assistance programs or grants which you can use to combine with your mortgage to achieve 100% financing? If you are considering buying a foreclosure home or a property which needs improvements what additional resources or mortgage loans which offer rehab funds are available? If buying a unique property or historical home can you capitalize on the current trend in crowd funding and raise funds online?
4. Interview and Screen Mortgage Brokers & Lenders
Don’t just rush to apply with the first lender who offers you a low rate. This is potentially the most important financial transaction of your life. Take your time to shop around, complete your due diligence and interview different mortgage brokers and loan officers to find someone you can trust and who will fight for the best deal for you.
5. Get Preapproved
Get your mortgage preapproval letter so that you know how much home you really qualify for and can begin home shopping.
6. Make Sure You are Looking at the Right Homes
Ask your mortgage lender how different properties types and conditions can affect your mortgage approval. Will buying a condo mean a higher interest rate? Which repair issues could kill your mortgage application?
Now get out there and find a great home and get the best possible mortgage deal you can…