Today with interest rates at the lowest in about 50 years, housing prices way down, why are consumers not jumping on the housing market??
The lending institutions are offering great rates, but they have tightened the credit requirements, and shut people out of the market. Some consumers won’t even try, as they are just scared they will not qualify after going through a lengthy an arduous application process.
Don’t be one of those scary consumers!!! Shop around. Some lenders will ask for everything short of your first born for collateral, move on. Find a lender that best fits you and your family’s needs. Here are some tips to help you make the best of your experience.
Review your credit reports from the three main credit reporting agencies. Check for errors and issues; get them resolved, before making a loan application.
Lenders can require credit scores from 620-680 and above, make sure your score is on the high end, you want the better interest rate.
Lenders will initially ask for the following documents: W-2, last two pay stubs, 2 years income tax returns, and bank statements. Have them ready, hard copy and electronic format. During the process if the lender requests additional documentation, submit it promptly.
Shop around for a mortgage, getting estimates from banks as well as mortgage brokers. Consider all the factors involved in the loan: interest rate, points, closing costs, and different types of loans. Decide which will work best for you.
Don’t make any major purchases during the loan process or after loan approval. Continue to pay your bills on time. Don’t apply for new credit cards or credit lines, or close an account. Remember lenders pull your credit again before closing.