How do I get a mortgage?
Getting mortgage need not be so complex. Mortgage officers check out a lot more than you may initially expect. But by following a few simple tips, you can improve your chances of getting a mortgage loan.
You will easily be prequalified for a mortgage if you meet the following criteria.
• You have a healthy income.
• You have good credit.
• You have money in the bank.
If you do not qualify on any one of the above factors, you will need to start meeting your mortgage officer almost a year or so before you plan to buy a home. Meet with more than one mortgage officer to compare notes, and know who offers the best package. Do bear in mind that in competitive markets, agents will not accept to take you to view homes without a mortgage prequalification. You will have to meet your mortgage officer well in advance of going out there to see homes.
Have Plenty of Documents
You must be prepared to prove to the potential lender that you have been filing your tax returns by producing documents that span several years. You will also be expected to have bank statements running several months. You will have to show lenders proof of your earnings and debts as well.
Your mortgage officer will want to know the source of any significant deposits you may have. You must have plenty of money to qualify for a mortgage. For a start, you must have money for down payment, insurance payments and property taxes for a year, and closing costs.
Need Money to Get Money
Lenders will want to be sure that you are well endowed financially, in case you lose your job, or after getting the house, there is a need for some urgent repairs. If your parents or some benefactor plans on giving you a huge sum of money for down payment for your house, they will have to document that in writing.
Owning a home brings with it added costs, and this is why mortgage officers will want to be sure you can handle any obligations that may arise. The down payment you will pay will be determined by your capabilities and agreement with the mortgage officer.