When you would dream about the type of house you would live in when you grew up, the word mortgage didn’t even come to your mind. However, as you grew up and started to realize the reality of buying your dream home you quickly learned that the word would be used often through the process.
If this sounds familiar and you are preparing to meet with a potential mortgage lender, below are some tips which can help you to prepare.
How Accurate Is Your Past?
Every lender will start the meeting the same way – by looking at your credit score and associated history. Why? Because this is the best way for them to get an accurate snapshot of your financial history and your present.
The keyword being accurate.
The last thing that you want to happen is to attempt to explain an inconsistency in your report which you have absolutely no idea. To prevent this, obtain a copy of your credit history before you meeting and investigate it yourself, paying attention to any of the following:
- Addresses which are not familiar
- Instances of your name being misspelled
- Applications for credit which you don’t recall making
- An outstanding debt which isn’t yours
If you notice any of the above or any other inconsistencies, be sure to raise the matter with your credit reporting agency as soon as possible and have the matter sorted your records adjusted. This will help to ensure that your mortgage lender has the most accurate understanding of your creditworthiness.
How Good Is Your Current?
Once you have your past taken care of it’s time to focus on your present.
The best place to get started is to create a detailed budget of your income streams matched against your outgoing expense. When it comes time to calculate your income streams, do your best to consider income from interest, shares, and any other dividends you may expect throughout the year.
When you are considering your outgoing expenses, it’s best to keep it at a macro level. For example, your mortgage lender doesn’t need to know how often you take advantage of a brownells coupon from Groupon Coupons, but they will need to know how much you spend on items like food, rent, entertainment, debts.
Once you are confident that you have everything in order, be sure to prepare the following supporting documents:
- Proof/Confirmation of income streams
- Statements which shoes a consistent level of saving
- Three months of statements from all of your lines of credit
Is It the Right Time?
Once you have this information in front of you, give second consideration to whether you are in the best financial position to make your application. Remember, the more failed applications you go through, the more it looks worse each time when a new lender looks at your history
With this in your mind, consider if waiting a few months could mean that you will have significantly less debt or whether you are expecting a positive change in your income in the future which could make your application stand out more favorably.
Meeting a potential mortgage lender for the first time can be a nerve-wracking experience, but know that the above tips can help you to arrive prepared.