What To Do In Advance To Prepare For Your Mortgage Application

By
Real Estate Agent with The Kathy O'Neal Team - RE/MAX Premier

According to mortgage experts, it is a good idea to gather up all of the needed documents in advance before launching your Northern Virginia house hunt, as this will make the application process a lot easier.

 

What Should You To Do In Advance To Prepare For Your Mortgage Application

The housing burst has resulted in much harder lending standards, which means that it could possible take weeks or sometimes even months to secure a loan.

Here are a few important steps that you should take in advance

Consider What You Can Really Afford

Before you start the entire Northern Virginia house hunting and mortgage application process, you should consider what you can really afford to buy.

It might be tempting to buy a house at the upper end of your price range, but consider the fact that it will be more of a struggle to make your mortgage payments and it will take much longer to pay down the mortgage.  Assess your finances and be honest with yourself.

Buying a home that is more comfortably within your price range will ensure that you can easily manage your monthly budget over the years.

Save Up A Down Payment

The bank will want to see that you are able to make a down payment of at least 20% of the value of the home.

In order to save up this amount of money, it will be easier if you start in advance and save a small amount every month.  The more you can pay for a down payment, the less your mortgage will be and the more money you will save over the length of the loan.

Do Your Research

Take your time to do lots of research in advance and seek out impartial advice on the mortgage market.  There are so many options to choose from and a lot to consider, so the more knowledge you have the more prepared you are to make an informed decision.

Consider Your Credit

Before applying for a mortgage loan, you should take a look at your credit report.

Your lender will look at it when you are making an application and they will use it to consider whether or not to offer you the loan and what type of interest rate to give you.  If you spot any errors or issues with the credit report, it is a good idea to get them fixed now before you apply.

If you are in the market for buying a home, The Kathy O'Neal Team is here for you!  We have a section devoted to "buyer strategies" on our website which may prove helpful!

[The Kathy O'Neal Team serves home buyers and sellers in Northern Virginia, with special focus on Chantilly, Centreville, and the communities of the Western Fairfax region.]

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