Mortgage Application

For most people, applying for a mortgage loan ranks right up there with interviewing for a job or calculating that last line on one's tax return. If you're feeling jittery about applying for a loan, keep this in mind: you're in the driver's seat. You're giving the lender your business, not the other way around.

Several days before your appointment, ask your lender for a list of the documents you'll need to bring. With complete, accurate information in hand, your lender will be able to prequalify you and complete your loan application.

Prequalification gives you an estimate of your maximum loan amount, purchase price and monthly payment. These estimates are based on how your income, debts, savings and credit history meet the requirements of a specific loan program. Your purchasing power may vary with different types of loans, so look at several options.

Lenders understand that flawless credit histories are rare finds. When your lender requests files from one or more credit reporting agencies, you may be surprised to find out-of-date or erroneous data. Ask your lender for assistance in tidying up your credit report.

A few late payments may require a written explanation. More serious credit problems may require alternative financing at a higher interest rate. In most cases, after 12 months of on-time mortgage payments and an improved credit history, you'll be able to refinance at a lower interest rate.

For recommendations of lenders who provide excellent rates and exceptional service, please contact me anytime.