As a first-time home buyer, you may be apprehensive about the process of obtaining your first home mortgage loan. Like most people, you have likely heard horror stories from your friends about loans that fell through or did not close. Thankfully, this does not need to be your fate. By doing some simple things, you can ensure that you obtain your home mortgage loan with little stress or frustration on your part. To this end, follow these tips to obtain your first mortgage loan successfully:
Tip: Order Your Credit Reports and Dispute Anything that is Incorrect on Them
As soon as you know you want to buy a home, then you need to order free copies of all of your credit reports. If you are buying a home with your spouse, then you should pull their reports as well. If you find any items on the reports that are not correct, then you need to write to the credit reporting agency and dispute them.
Tip: Close Open Lines of Credit Even if They Don't Currently Have a Balance
When you apply for a mortgage loan, the lending bank will consider any line of credit that you have open as possible debt. For example, if you paid off a credit card with a $10,000 limit, then the loan company considers you to potentially have $10,000 in debt. For this reason, you need to call and close all of your credit accounts that do not currently have balances on them. This simple action will decrease your available credit and make you more appealing to the mortgage lender.
Tip: Hoard as Much Cash as Your Possibly Can
Since it is common to have last minute costs associated with buying your first home, it is important that you hoard as much cash as possible before your purchase. In the weeks leading to your mortgage approval, you should not use any credit cards or create any new debt that could get your loan rejected. Because of this lack of access to credit, you need to have cash ready and available for any unknown costs that may arise.
Tip: Work with a Professional Mortgage Loan Broker
Finally, one of the best things you can do when it comes time to obtaining your first home mortgage is to work with a professional mortgage loan broker, or visit a site like http://www.lendtheway.com. A mortgage broker works with many different lenders and can find the one who will approve your loan application without unnecessary frustrations.
Three years ago, my husband and I started saving money for an extensive home renovation project. While we have been able to save a lot of cash over the last three years, we still don’t have enough money to pay for the upcoming remodeling project we plan to do at our home. Therefore, to raise the remaining funds needed, we are going to take out a home equity loan. If you need to do some home remodeling projects around your home, you should consider taking out a home equity loan. This type of loan can help you pay for important items such as new floors, a new roof, or new siding for your home. On this blog, you will discover the types of home equity loans offered at most lending institutions. Enjoy!