Your Mortgage Loan.....Be Prepared

We have touched on a lot of different topics on this blog but I recently thought of a topic that we have yet to address in detail. What should you be doing in order to prepare yourself for what lies ahead when applying for a mortgage loan? The following points will hopefully make the process easier to understand and help you index the items that you will need to consider.

1) Know your credit score and what's on your credit: This should be the first item you look into when considering to apply for a mortgage loan. Are there any reporting errors, collection accounts that need to be resolved, or just derogatory information negatively impacting your score? You would be amazed how many reports have medical collections that individuals didn't even know were there! There are also reputable credit repair companies that for a small fee will help you address and tackle the issues of repairing or erasing derogatory or erroneous information on your credit report.

2) Locate and organize your financial documents: You will need to have two year's taxes, pay stubs, bank statements, savings statements, 401k, IRA and any other investment information readily available. You may be asked to provide a divorce decree, bankruptcy documents, Social Security Award Letters and Pension Statements as well. The bottom line here is stay organized and have this information where you can readily find it without difficulty. Should you be missing anything I would suggest you contact the necessary party (i.e. Accountant, Bank, Social Security Office, Employer, etc.) to get a copy of what you are missing.

3) Get a Good Faith Estimate and talk with a very reputable lender: The most important thing to remember here is knowing what's involved in the mortgage process, what you will be charged and where it all goes. Be sure to look at the entire package (i.e. interest rate, APR, fees, education, ethical background and knowledge of the market). The lowest rate lender in town may not be the best option for you if they don't know what their doing.

These are the three main aspects in dealing with getting home financing. The process can be much easier if you are prepared and work with a company and individual who continually educates him/herself and guides you to the options that best fit you!

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker