Getting Pre-approved for a Mortgage

Getting pre-approved for a mortgage can give you the possibility of buying a property in no time. We will give you three pointers that will help you get pre-qualified for the best home loan.

Maintain a healthy credit history. Know your credit score!

It is very important that you are up to date with all your payment loans because it will guarantee you to get the best interest rates.  Remember that it is best to ask for pre-approval for any mortgage after covering all your debts. And don’t forget to have in hand a copy of your updated credit report to make sure all the data is correct before presenting it to a financial institution.

Have all your financial Information ready

One of the things that a lender will need to review is your income. Have your W-2′s and pay stubs ready. If you are self employed, have the last 2 years tax returns ready. In addition, the lender will want to see proof of your cash. Have all your bank account statements ready, including retirement accounts, 401k statements, etc. They will to see to months worth of!

Choose between adjustable and fixed rates

Adjustable rates may seem like an attractive option as it offers very low interest rates in the beginning. But don’t let it fool you, it may fluctuate according to the prime rate and several indexes connected to the mortgage.

On the other hand, deciding for fixed rates may let you sleep at night and not worry about how much your payment will increase or decrease next month. Search for online sites that may help you decide for the best rates according to the size of your mortgage loan. You will even be able to bargain with banks online!

Stay in budget

Choose mortgage plans that will let you increase value to your property. Interest – only loan plans, for example, may allow you to buy more expensive properties but, in the long run it will not give you the benefit you expect. Always try to negotiate with sellers and make a deal that will help you stay in budget.  Remember that this is what you are going to pay every month so it has to be something you can afford in a long term plan.

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