Mortgage Resources

What to Do While Waiting for Your Loan Application to Be Approved

There are few periods of financial change as substantial as applying for a home loan. It can be a very confusing time, so it important to keep all the information straight. You never know what will affect your approval, so it is best to play it safe during this turbulent time. Keep this list of things to remember when working toward a new mortgage in mind to help the process run smoothly.

Save Everything

If you keep a copy of every single paper, it will be beneficial for several different reasons. First of all, a lot of information is required of you, so if nothing else, having your documentation handy and organized will speed up the process of applying for a loan. In the worst case scenario, your documents or forms could be lost by the lender, but if you are responsible and keep copies,

Applying for a home loan is a complicated process that requires you to be organized and save every form and paper. You never know what will be important at some point in the future. You should always make copies of everything associated with your application, but it can be tough to decide what preexisting documents are important. This mortgage checklist can help you make sense of the more general documentation that you should save when applying for a loan.

Income Verification

The first information you should gather is your payroll stubs. Your income is one of the most important details a lender is interested in. Try to find your payrolls for at least the last 30 days. It is also very useful to have your tax returns and any W2 forms handy. Other income related documentation that could be important include:

• Pensions
• Disability
• Social Security
• Child Support
• Alimony

Raise Your Credit Score, Lower Your Mortgage Rate

What does your credit report mean about your new mortgage? Quite a bit, actually. Your credit report is used by a lending company to figure out the program you can be qualified for as well as the interest rate for which you are eligible. This report contains a compilation of your information such as loans or credit accounts currently active, bankruptcies, late payments, judgments made against you, inquiries from potential creditors, and more. It offers insight into your financial history as well as your payment patterns.

Creditors use the credit report to decipher your credit score. As that score creeps up, your interest rate can drop. Here are a few things to do — and a few not to do — to clean up your credit report and keep it mortgage loan friendly.

Payments

Making payments on time is one of the most important things you can

When you find a home you love, you’re probably ready to move in right away. Unless you’re a multimillionaire, you’ll probably need financing (aka, a mortgage) to purchase the house of your dreams. Though the mortgage process can appear daunting, below are some easy steps to a new mortgage that will help you obtain your dream home.

1.  Seek preapproval

Preapproval from a lender is one of the best steps you can take to secure a mortgage. What are lenders looking for? In general, they want to see borrowers with a stable income and a low debt-to-income ratio. If you have significant debt, such as student loans or credit card debt, focus on paying it off before you set foot in a mortgage lender’s office. It will make the approval much easier by boosting your credit score and freeing up more of your income for house payments.

2. Complete a full mortgage application

Once you’ve

Choosing the Right Loan Made Easy

Finding the proper financing for your new home can be stressful. Choosing the right kind of loan is vital, however. Everyone’s situation and needs are unique and there are many different kinds of loans to best accommodate as many people as possible. The specific distinctions are confusing, but they are divided into easy to understand categories. By researching ahead of time, you can have a better understanding of what your down payment, interest rates, and monthly payments will look like, which allows you to better plan for your future.

Fixed or Variable Rate Loans

The most basic distinction between loans is whether it has fixed or adjustable rates. Fixed rate mortgages are very straightforward, and are likely what you think of when you imagine a loan. When you agree to the mortgage, the rates are established for the entire duration, usually either 15 or 30 years. Your monthly payments and down