Internet ads and television commercials can make it seem like getting a home mortgage should take no longer than a few minutes and require no forethought or preparation. While this may be true in a few instances, most applicants will find the process to be a bit more intense, especially if they are not fully prepared to take on the responsibility of a home mortgage. There are, however, some important steps every home loan applicant can take before filling out the application that really will make their process much simpler and faster.
If you are planning to purchase a home and will need a mortgage to do so, taking the time to do everything on the following list will simplify your application process and increase your chances of being approved for a home mortgage with great terms.
Make sure your employment situation is stable and sufficient
The first thing to do when first considering the purchase of a home is to look closely at your financial situation to make sure that you will be able to afford the payments on your current income. Doing this should include considering your current employment to make sure it is secure, as well as planning ahead for how you might increase your income in the years after you close on a home.
Save up to pay your down payment and closing costs
While VA home loans do allow borrowers to purchase a home with nothing down and roll the closing costs into the amount of the loan, most home loans will require at least a small down payment, so it is wise to have money saved to cover these costs. Borrowers should also understand that rolling closing costs into the loan amount means paying mortgage interest on that amount, so it makes better financial sense to also have savings set aside to cover the closing costs before making application for any home loan.
Verify your credit report information and address any issues
Another important step prospective home loan borrowers should take is verifying their credit reports with all three major credit bureaus - Transunion, Equifax, and Experian. By doing this before completing an application, borrowers will have time to correct any mistakes and make sure that their credit report is as accurate as possible.
To learn even more ways in which you can simplify your home loan application process and help to speed an approval, take time to discuss your situation with a reputable home mortgage services representative in your area.Share