09 Jan Tips for Getting a Better Mortgage in 2012
Qualifying for a mortgage has become more of a challenge these days, but there are things that you can do to increase your odds of getting the best loan.
- Review your credit report. Make sure everything being reported belongs to you and reflects your true payment record. Contact individual creditors to request corrections. Once the creditor has corrected the error(s), check your credit report to ensure your record has been updated accurately.
- Clean up credit. Make timely payments, pay off any collections and pay down credit card balances. Not only will it increase your credit score, it will show to potential creditors that you’re being responsible with your obligations and keeping debt levels low.
- Be honest. Don’t neglect to document credit issues, sources of income, or assets. Not only could such omissions delay application and/or approval, they could lead to a denial of credit altogether.
- Gather documentation. Ensure your paystubs, investment and bank statements are accurate, both in amounts, names, and addresses. If you’re putting a down payment on the property, be prepared to provide documentation on the source of the funds.
- Review Good Faith estimates. Make sure you’re comparing apples to apples and know all the fine print of the loan(s). Don’t just focus on paying the lowest APR, as there can be negative terms buried in the fine print, such as prepayment penalties and origination fees.
While some of these steps may take several months to complete, they can pay off in the end by allowing you the best loan with the lowest rate possible.