Tuesday, January 26, 2010

Mortgage Application Tips

By Graham McKenzie

Are you worried that your mortgage application is going to fall through' There are many things you can do to ensure that you get your loan, and many of them only require a little preparation and time.

The first step to getting an approved mortgage application is to check your credit score. Although checking your score often can actually make it worse, it's important to know what it is and if there are any problems that need to be fixed. Having a good credit score makes it much more likely that you won't be denied.

The next step is to get all of your papers in line. A mortgage application requires all sorts of documents, and it is likely that it will take you quiet some time to compile them. Make sure you have proper bank statements, tax returns, pay stubs, and investment statements before trying to fill out your paper work. If you are self employed the process may be even more difficult. You must be able to show past tax returns to prove that you truly do have a job. You are technically considered self employed if you are paid by commission, work at home, or own at least 25% of a business.

Among the frequent mistakes that people commit when applying for finance is that they request for a huge amount. Even though applying for a certain amount doesn't take much, but if your financer feels that you may not be able to pay back then your loan application may be rejected. Do some research and get pre-approved for a mortgage so that you know accurately how much the bank can offer you. You can also let the bank decide the amount.

While filling out a mortgage application communication is key to getting what you want. There are several different people involved in a mortgage including your broker, real estate agent, the seller, attorneys, and inspectors. You need to make sure that everyone is on the same page so the process goes smoothly. If you do not do this your arrangement may fall apart quickly and you will have to start over.

Before you apply for a mortgage get a good idea of what you are getting into. Learn all you can about interest rates, mortgage types, and down payments. The goal is to get a payment plan that works for you so you don't have to refinance in the future. Take care in choosing your broker as well, as there are some that are more interested in making money than getting you a good deal.

Once you get a better understanding of the mortgage deals out there you will know exactly what will work best for you. There is no need to be worried about your mortgage application as long as you take the steps to prepare your finances and get your credit in line. In no time at all you will be able to move into your new home and enjoy your low monthly mortgage payments.

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