Buying a new home is sure to be an exciting time for you. Your house may be your largest investment and one that you're sure to be proud of owning. However, you may need to secure a loan in order to purchase this property. Understanding tips to help you get approved for the amount of money you need is ideal in this situation.
Tip #1: Have good credit
The time in which you have paid your bills in the past will translate into a credit score. Lenders will closely examine your credit rating to determine if you're a good candidate to lend the money to and that you will repay it.
It's ideal to have a good credit rating if you are attempting to borrow money. Studies indicate that 720 is considered to be a rating that is good and should assist you in getting the necessary loan to purchase your new home.
Tip #2: Be prepared
You will be required to provide several documents to your lender in an attempt to borrow money. It's ideal to have these on hand before you visit your banker. Listed below are some of the written documentation you should have:
- Verification of your income with a W-2.
- The past two years of your tax returns.
- The proper identification, such as a driver's license that will have your photo on it.
- A thorough list of all of your debts and assets.
- Copies of past pay stubs to show the amount of your monthly income.
Tip #3: Have an existing relationship
One way to improve your chances of securing a mortgage loan is by having a history with your lender. For instance, if you've been a regular customer for a number of years, this can improve the chances of being able to get a loan.
On the other hand, trying to borrow money from a financial institution that doesn't know who you are may cause you to have to jump through more hurdles. This can make the entire process more complex and lengthy.
There are numerous benefits to owning a home, and you are sure to enjoy having a living space to call your own. By following the tips listed above, you may have a better chance of getting your loan. Be sure to rely on a reputable mortgage company in your area, such as CU Mortgage Service, to assist you in achieving this goal today!