Recently I have been posting in my Coldwell Banker Encinitas blog some helpful and realistic real estate tips for buyers and to continue with these valuable insights I would like to provide you with seven effective strategies for a successful mortgage application. Many buyers are uncertain of how or when to begin the mortgage application process and today I am happy to share several ways to make the undertaking a smooth and pleasant one.
- Obtain a current copy of your credit report – Most people don’t know what is on their credit report. A complete and thorough review is necessary to understand your credit situation and repair any issues that may exist prior to contacting a lender.
- Be prepared to provide documentation – With more stringent lending guidelines, income and asset documentation is being required now. With all of the regulatory changes that have occurred in the mortgage industry, the level of verification is considerably higher than it was a few years ago.
- Conduct research on loan product availability – There are still a variety of products available to fit most any consumer needs. Getting a through understanding what is available and how you qualify is essential before you apply.
- Educate yourself with respect to property type market trends – As a result of certain kinds of declining property values, some property types such as condominiums, and other unique housing types are experiencing resale issues because lending guidelines have become more restrictive on these kinds of properties. Being prepared for this reality is essential in setting expectations.
- Be prepared to to provide specific information for rate calculations – Many applicants call to simply inquire “what is your rate?”, but this isn’t an easy question to answer any longer. Accurate calculation of today’s interest rates will likely take into consideration factors like credit, Loan to Value Ratios, property type, location, and loan size.
- Obtain a written loan pre-approval – You can still be quickly approved over the phone or online and receive a written pre-approval same day in most cases. By being approved up front, you will be in the best possible negotiating position when you are ready to make a purchase.
- Make sure you have a thorough discussion with your lender – A complete conversation will include the mortgage process from beginning to end. Having an understanding around the what, when and whys of providing documentation, the home appraisal process, your final loan commitment as well as what is involved in closing your loan is critical. It is important to know exactly what you should expect after the closing. Having a comprehensive understanding of the entire process will ultimately lead to a successful transaction.
For the past 20 years Encinitas Realtor Linda Moore has been helping buyers chart the course for mortgage pre-approval. Her thorough understanding of the recent transformation within the lending industry places her in an elite category of Realtors, continually staying abreast of the latest changes in the marketplace to ensure a successful home buying experience