Applying for a mortgage is an exciting yet scary time in our lives. We want to make sure that we are getting the best bang for our buck, but we also need to make sure that we are working with a mortgage lender that has our best interests at heart too.
Before applying for a mortgage, there are a few things that you will want to get done. The first thing is taking a long hard look at your credit score. You’re allowed one free credit report annually from each of the major credit reporting agencies.
Once you have received your credit report, you will want to go over it with a fine-tooth comb to make sure that everything on there is completely accurate. Make sure that any debts that you have listed on your credit report are yours, make sure that nothing is being reported past the limitations, which is usually seven years, and that nothing has been reported more than once.
If you do find that there have been mistakes made on your credit report you should file a dispute with the credit reporting agency with any and all supporting documentation that you have. In your report to them include copies of all your documentation, never originals. Once this is done the credit reporting agencies have a set time limit on investigating your claims, and if they find that a mistake has been made they must fix your report and are not allowed to put the error back on your credit report.
Once you have your credit all squared away, you will want to begin working on your down payment. Some mortgage lenders only require a down payment of as little as 2.25% while others require that you have 20% to put down. Something that is important to keep in mind about down payments is that if you borrow more than 80% of the value of the house, you are trying to purchase you will be required to carry private mortgage insurance. Being required to carry private mortgage insurance will make your home payments larger until you are able to get under that 80% mark, which at that point you will no longer be required to carry it.
Another important thing to remember about mortgage lenders is that they will not want to take all of your savings for a down payment. Lenders will want you to have some reserve cash in case there is an emergency because they will not want you to be late, or even stop, making your mortgage payments because something unforeseen came up.
When looking for your new home, https://www.lifesgreat.com/mortgages is a great place to start when you are ready to begin your journey. They offer a knowledgeable and friendly staff that want nothing more than to get you and your family into the home that you want, and deserve. Knowing that you are in great hands is going to be a huge weight lifted off your shoulders. Buying a home can be a very stressful time, so let the people from https://www.lifesgreat.com/mortgages help you make the process that much simpler.