Choosing the right mortgage to suit your needs is about much more than securing a low interest rate! It is also important to find the right lender who you feel confident working with. This is a substantial financial commitment so knowing that your lender has your best interests at heart can make a huge difference.
If you are ready to start seeking pre-approval on a mortgage, it is important to take some steps to make sure that your finances are in order and that you are ready to make that next step. Some of the things you can do to prepare for making a mortgage application include:
Your credit score is a huge determining factor when it comes to any type of lending, including a mortgage. It is best to check your score in advance a few months before applying for a mortgage so that you can work on improving it if you need to. Paying off your credit card balances and keeping on top of monthly bills is a good way to build your score.
It is essential that you have a lump sum available to you to cover a down payment once you find the home of your dreams. The ideal down payment is around 20%, but depending on your lender you may be able to put down as little as 5% as long as you are able to cover your monthly repayments. The bigger your down payment, the more you will be able to reduce your monthly installments.
One of the big things that a mortgage lender is looking for is assurance that you are financially stable and will have a stable income that allows you to make your repayments, not just right now but well into the future. Evidence of your employment history and paychecks can be a great place to start.
As part of our wholistic approach to real estate, we are happy to share with you the details of trusted lenders you may want to work with in securing your mortgage.
NMLS#1585839 Fairway NMLS#2289
503 Clinch Avenue, Knoxville TN37902
(865) email@example.com www.fairwayindependentmc.com/Amanda-Holman
Mortgage Development Specialist, NMLS 825340
UT Federal Credit Union
707 East Emory Rd | Knoxville, TN 37938
Phone: (865) 971-1971 | Ext. 379
Fax: (865) 549-7371
Sr. Vice President and Private Banker
5537 Kingston Pike
Knoxville, TN 37919
Phone: (865) firstname.lastname@example.org