House Mortgage Refinance Loan

Mortgage Basics: How to get a loan

November 13th, 2007 Subscribe To Our Feed

by Marc Roman

If this is your first house or your tenth, it’s always best to be prepared to get a mortgage. This guide attempts to instruct you on the proper steps needed to get a mortgage quickly and painlessly.

Everything is driven off of credit score these days. So, if you know where you stand with your credit you are better prepared to get your mortgage successfully. You can contact the credit bureaus directly by letter to ask for a free copy of your credit report. This is a new law designed to help consumers, and is a great help.

The free credit report should give you the information you need to assess where you stand. You should pay the most attention to any negative items, and remove them if at all possible before you apply for your mortgage.

It’s often possible to pay off judgments before you apply for a mortgage, and if it at all possible you should pay off as many of your negative items as possible. Also make sure you are current on all of your credit obligations. Lenders really frown on foreclosures, late payments, judgments, and bankruptcy is the big loan killer.

Now hold on to that credit file, and make copies if you can. Take your credit file with you when you interview any lenders. The mortgage officer should be able to give you an idea of what to expect in your mortgage just by looking at your credit report, and not pulling a new report. The problem is that you can actually bring your credit score down just by having too many lenders pull your credit score while you are shopping for a loan.

It’s also a good idea to compile all of your documentation that you can. If you can get together your last two years tax returns, and last two months of pay stubs and banking statements. You’re that much more ahead of the game.

With the tons of different choices in lenders it’s sometimes hard to make a decision who to work with. There are mortgage brokers, national banks, local banks, and credit unions. Each bring a different angle to the business. By talking to each one, you’ll have an idea of what they specialize in.

When you talk to a prospective lender you want to make sure that you connect personally with the lender’s representative. That’s the first step. And of course you want to make sure you’re not paying too much. You’ll need to get a Good Faith Estimate or GFE, which will give you a general idea of how much your new loan is going to cost you.

Price is only one part of the equation. But if you’ve done your homework you should be prepared to pick a lender who will be able to work with you to get your mortgage done as quickly and painlessly as possible.

About the Author:

Bureau For Credit Repair offers professional credit repair help for anyone regardless of their circumstances. Click here to get your own unique version of this article.

Tags: Mortgage, home Mortgage