5 Tips to Get Mortgage Approval without Hassles
Are you about to jump-start on the mortgage loan process? Here are some useful tips to help you get approval without delay and hassles:
Good Credit Score
You must get credit score in shape before applying for a mortgage. A low credit score can significantly lower your chances of getting a mortgage. Higher credit score will give you an advantage of negotiating for better rates with potential lenders. Keep your credit reports accurate and free of errors. You should also pay off high-interest debts to reduce the overall level of debt. This improves your debt-to-income ratio. Do not forget to pay off the credit cards.
Get a Preapproval
Most people do not find this important but it helps a great deal. You must get a mortgage pre-approval letter prior to researching for houses. This will give you a benefit while bidding against other buyers. This letter is a proof that you’re serious about buying the house. It also shows that lender has already evaluated your financial situation and determined the amount you can afford to borrow. A preapproval saves time.
Preapproval requires you to show the following info to lenders:
– Social Security numbers (for you and co-borrowers)
– Information of bank, checking, savings, investment account info
– Any existing loan
– Debt obligations (credit card, student loan, car loan)
– Tax returns for 2 years
– Information on salary and employer
– Information on the amount of down payment you can make and the source of that money
It is recommended to get preapproved by more than one lender. This will help you to compare Loan Estimate forms and determine the best rates and terms.
You must search for the best mortgage rates online. The rate quote offered to clients is an estimate. Your mortgage broker Bromley will pull your credit info and process application for loan to be able to come up with the accurate rate for your situation. After acquiring quotes from several mortgage brokers, you must compare costs and decide the one that makes the best option for you.
Make Appropriate Queries
Start by narrowing down the choices. This is easier if you ask for referrals of lenders you’re your friends, family, estate agent, etc. You may also read some online reviews. After preparing a list of names, it is time to make queries.
– You must ask the following questions:
– What mode of communication do you prefer to use to connect with clients?
– What is the turnaround time on preapproval, appraisal and closing?
– Can you give me a total and complete lender fees detail that I need to pay at closing? Make sure the fees offered to you include loan origination, commission, points, credit report, appraisal, and application fees.
– Will you waive any of the fees?
– Is it possible to roll the fee into my mortgage?
– What are your down payment requirements?
You must check with your mortgage lender or broker if buying discount points can cut down your rate.
Apart from principal and interest payments on a mortgage, you must ask about the following:
– Closing costs
– Loan origination fees
– Other transaction fees
A lot of mortgage lenders will demand an “earnest money” deposit. This is how the loan process starts. Enquire the lender about the circumstances under which the earnest money cannot be returned. Do not consider the lender if the answer is vague.
Read Fine Print
Always read the fine print carefully on your loan documents. This is important to know about the precise finance terms, payment of closing costs, items included and excluded with the home, home inspection contingency, date of closing and other significant details. Examining the fine print carefully will help you to avoid any confusion or issues in the long run.