Finding your dream home is easy, but obtaining a competitive home loan is not. Thankfully, with sufficient planning, you can obtain the best mortgage possible – providing you with significant financial savings in the long run.
Check for Credit Score Errors
The most important element of obtaining a competitive loan is your credit score. Even if you have stellar credit, obtain a copy of your credit report from the three reporting agencies to check for any reporting errors. Considering that 40% of credit reports have errors, it is important to resolve these problems before you apply for your mortgage.
Raise Your Credit Score
Generally, it takes six months to one year to improve your credit. The earlier you begin, the better your score will be. However, if you plan on applying for a loan within the next two months, you can still improve your credit. Reduce your debt-utilization ratio by paying down your credit cards and staying well below your maximum credit limits.
Show Your Savings
During the mortgage application process, the lenders will scrutinize your financial health. Do not keep your savings in a checking account. Instead, open a savings account or CD to demonstrate your ability to save money. Remember, the more you have for your down payment, the better your mortgage rate will be.
Becoming pre-qualified for your home loan locks in interest rates, protecting you from fluctuations. In addition, being pre-qualified demonstrates that you are a financially serious buyer, which aids greatly during your closing negotiations.
Planning ahead increases your probability of obtaining the best mortgage possible for your dream home. Having an experienced and knowledgeable Realtor on your side will improve your success. One of the most important aspects to winning the contract is connecting with a local lender and having your pre-qualification for funding before looking at houses. When homes are only lasting days on the market you will edge out the competition when you can demonstrate you’ve done the financial planning before the offer. Sellers want to know that you can follow through on your offer.
Want to connect with a local lender in the Greater Fort Worth Area? Check out the information below to get started on your journey to home ownership.
Blair Thomas with Gateway Mortgage has several programs unique to helping clients with down payment assistance, and he works with all types of loans including conventional, VA, and FHA. He has helped to qualify clients when other lenders said it couldn’t be done. You can reach him at 972-543-8999 or 214-794-8627. You can also provide your information to him for a quick response at https://app.smartsheet.com/b/form?EQBCT=975c3496826e456b8b1c40a480ac56d3
Alex Varela with PrimeLending has an extraordinary team of loan officers working for you. His team specializes in every type of loan as well as staying in the know of new programs and services available to individuals like yourself. The SETH 5 Star program is just one of those programs. You can reach Alex or one of his team at 972-250-9603. You can also apply online at teamvarela.com