Posted on: 29 August 2017
When you start looking to buy a home there are a few things that you need to do in order to have a pleasant experience. One of the biggest mistakes that people make is going shopping for a home before they know what they are qualified to buy. This just sets up a home buyer for heartache. It is terrible to fall in love with a home and put in an offer only to be denied the loan. This is an easy thing to avoid, and all you need to do is pre-qualify with the lender. Here are a few things to remember when talking with the lender.
Your Credit Is Very Important
When the lender looks at your credit, and it is a when not an if, you want the lender to be impressed. The only way that you can be sure is to check your credit well in advance. You know that your credit is a deciding factor when it comes to qualifying for a home loan, so do something about it. The best thing that you can do is check your full report. It is nice to see what your scores are, but your report will tell you why your score is where it is at. When you see your report if you are less than satisfied then you should get help. You do not want to leave qualifying for a home up in the air. Talk with credit repair companies to help you with your situation. There are many different aspects of credit, but negative items can really hold a score down. A credit repair company will usually focus on the negative items because if a negative item comes off your report the score is able to recalculate. Walking into the lender with a good credit score is a good feeling.
When you talk to the lender they will check your credit score, but they will also need your past two tax returns, and your payment history. The lender will be investigating your overall financial health and debt to income ratio. It usually does not take very long to pre-qualify but once you are qualified the lender will tell you a number that you are qualified to go up to. This will aid in your home search a great deal. Not only will you qualify for a better loan because of your credit, but you will save money on interest as well.Share