Take Steps Toward a Home Mortgage Loan

If you’re planning to take out a home mortgage loan, you may think your only option is to apply with a potential lender and wait to see what happens. But there are some steps you can take ahead of time to make the process of acquiring a home mortgage loan much easier.

Start the home mortgage loan process by checking out your credit report. You can get a free copy of your credit report each year by visiting www.annualcreditreport.com/cra/index.jsp. Take time to get your report from Experian, Equifax and TransUnion, as each may have slightly different information. Review the information carefully, paying close attention to any information you believe to be wrong. Then go through the process of questioning that information and follow up by ensuring that errors are corrected. But why is this an important first step in the home mortgage loan application process?

Lenders will look at your credit history as a means of determining your ability to repay a home mortgage loan. Errors could very well keep you from acquiring a home mortgage loan. Correcting those mistakes takes time, and working on that problem before you start the application can shave weeks off the time it takes for approval of a home mortgage loan.

Another important step in the home mortgage loan application process is to shop for a lender. Finding a mortgage company familiar with the particular kinds of loan you’re looking for will put you ahead of the game. For example, a mortgage company that typically makes jumbo loans for multi-million dollar homes probably isn’t going to be ready to offer good terms if you’re looking for a mobile home loan. The same is true in reverse. If you’re looking for a home mortgage loan for vacation property in Florida, you’ll probably get your best deal from a lender who routinely offers loans of that kind.

Finally, be sure of the money you have as a down payment before you put in an application for a home mortgage loan. Just because you have $15,000 in savings it doesn’t mean you’re ready to put that down on your loan. Consider closing costs, lender fees, insurance and even moving expenses before you cite the amount you can use as a down payment on your home mortgage loan.

Please be sure to check out our pages about What Is A Home Equity Loan, Home Equity Loan Rates, Home Improvement Loans, and Home Loan Calculator elsewhere on this site.

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