Tips to Help You Secure Your First Mortgage
Unless you are paying full price in cash, you're going to need a mortgage if you want to buy a Home. Fortunately, interest rates for these loans are currently at historic lows, which makes it easier than ever to afford the house of your dreams. Follow these steps if you want to get the best mortgage value for your money.
Check Your Credit Report
Arguably, the one of the most important factor in determining your mortgage is your ability to manage money, which is detailed in your credit report. This document includes such information as the credit accounts that you have, the debt that you're carrying and with whom, your monthly payments and how often you meet payment deadlines or skip them.
Check Your Credit Score
Your credit score is a number between 300 and 800 that indicates your credit worthiness. Higher numbers, those above 700, will get you the best interest rates and payment terms. Lower numbers, anything under 600, may make it impossible for you to obtain a loan. Much of the information in your credit report determines the score. Not sure what your credit score is? You can find out here!
Fix Problems
Go through your credit report in detail and look for any errors, such as in the amounts owed, the names and addresses of merchants, and your payment history. If you discover any issues, contact the company responsible for the account or the credit reporting company that created the report. By law, they must correct the error, although it might take them a while to do so.
The only areas you cannot correct are accurate financial issues, such as missed or late payments, bankruptcies or judgments against you. If a lender asks you about these problems, be prepared to explain them. Otherwise, these black marks will typically drop off your credit report in about seven years.
Get Prequalified
Before you go on a house hunt, you need some idea of what you can afford. Although the Internet is full of affordability calculators, their results carry no weight with sellers. A calculation that is valuable in real estate offers is prequalification. This is a process where a lender examines your credit information, down payment, and other financial details to determine the mortgage that you can afford. Armed with this information, you can then confine your house hunting to properties in your price range.
Hire a Real Estate Agent
Buying a home is a complex process that involves rules, regulations and standards that you must follow precisely, or your transaction will fall through. You may think that doing this on your own may save you money but it may cost you more in the long run. Obtaining the services of a real estate agent is the best way to ensure that your purchase will be successful and efficient.
Tom and his Team will help you find several homes that meet your pre-qualification amount and your desires. They can also open homes up to you that do not yet exist on any Internet or newspaper listing. Finally, they'll negotiate the best price in your name and fill out all the paperwork, so that all you have to worry about is when you can move in. Additional Lender info can be found at www.LendAnnArbor.com or contact us for recommendations.
Tom is a Michigan Licensed Broker working in the Ann Arbor Real Estate Market. Contact
