6 Tips for Getting A Mortgage

If you are planning to buy a home or refinance your mortgage, you might be a bit apprehensive about the mortgage application process. After all, media reports on how banks have tightened their purse strings can make the process seem daunting.

While its true that mortgage applicants face challenges not present at the height of the real estate boom, there is some good news you many not be aware of: 30-year fixed rate mortgages are below-some of the lowest rates in over 30 years. First time homebuyers may qualify for federal tax credits*, and some states (such as California) have instituted tax credits as well to stimulate local housing activity. So the news is very promising.

There are things you can do now to ease the application process and increase the odds of finding the right mortgage.

• Improve your credit. Standards have normalized, and you’ll need a good FICO score to obtain the best rates. Check your credit report, and correct any errors.
• Gather necessary paperwork to verify employment and other income as well as any assets.
• Be an educated consumer. Learn about the various types of mortgages, and for adjustable rate loans, consider the impact if the adjustment reaches its peak.
• Pay down debts. The fewer debts you have, the better your application looks to the lender. Mortgage lenders prefer borrowers who are not over-leveraged.
• Once you make an application, respond quickly and fully to any requests you receive from the lender for additional information.

To learn more about the opportunities available to you today, contact the team at CENTURY 21 Adams & Barnes today. We have the connections to help you take advantage of current market conditions.

* Consult a Tax Professional