Borrowers who don’t take the time to do proper research often end up being declined. Worse, they may get mortgages they can’t really afford. Don’t become one of them. Below are seven tips to help you get a good mortgage.
Avoid foreclosures or bankruptcy.
These will obviously result in you being benched off the mortgage game for a couple of years. Avoid late mortgage payments. Even if you have a high credit score, these can turn up on your credit history report and cause mortgage lenders to decline your application.
Determine exactly how much you can spend.
Salt Lake City mortgage company Altiusmortgage.com explains that the home you purchase can be two to three times your annual income. Remember that you must actually be pre-approved or pre-qualified by lenders before you begin looking at potential properties.
Kock in your mortgage rate.
Failure to lock in your mortgage rate can result in a significantly higher rate. While you have the option to float or lock, ensure that you fully understand both choices. Pay close attention to interest rates during and prior to the mortgage process.
Establish your credit history.
Basically, lenders will require that you have a minimum of three credit trade lines that must be seen in your credit history report. These must also have at least a history of two years each.
Don’t charge excessive amounts to your existing credit cards or open a new credit line during or prior to the mortgage application process.
This will considerably lower your current credit rating and raise your debts — grounds for being declined a mortgage in Salt Lake City or anywhere else.
Don’t try to refinance your home before applying for mortgage.
This is common sense — who would want to give you a mortgage on a property that you attempted to sell only months prior?
Look around for the best mortgage deals.
If you think that the best deals will magically present themselves to you because you want them, get your head out of the clouds. Treat shopping for a mortgage just as you would any huge investment — with proper attention and tons of research.
It takes effort to get the best mortgage rates. Don’t settle for a mortgage you wish you can pay — be sure about your choice before you sign the deal.