100 residential mortgage

100 residential mortgage
Purchasing a home is one of the biggest investments you can make. The financing plan that you can be with you for as long as thirty years, so as the planning is crucial.

If you decide that you're ready to buy a house, you should take six months to get even before the actual implementation in an offer. During these six months, you will want to proceed as follows:

1. Check your credit reports. Everyone is entitled to a free credit report every year from the 3 reporting agencies: Equifax, Experian and TRANS UNION. You can use the credit reports from freecreditreport.com. After you receive your report, check it carefully for errors. If you have loans that paid off, do not have the word "closed" on the credit report that is corrected. Please contact the issuing bank in writing and submit a letter to the credit reporting agency. This may be take some time to correct, which is why it is important to start this process 6 months before you need the mortgage.

2. Check your credit scores. A company called FairIsaac (myfico.com) is that your credit score is created. This is a number that is on your credit history. The assessment takes into account the following: how much you owe, payment history, length of payment history, loans for new and types of credit lines open. Note that the result is not dependent on your income! Credit scores of 300 to 850th The higher your credit score, the better the interest rate that you receive on your mortgage. If your result is 700 or more, you get the best prices there. To improve your credit score, it is important to pay your bills on time. Do not miss or be late with payments, and your earnings will start to rise. If you have a bankruptcy or crime on your account, this will be longer than 6 months in which to drop and your report. Bankruptcies 10 years, and losses (such as collections) can be 3-7 years to fall and the report.

3. Make a budget forecast. Own a home in more effort than just the mortgage payment. You must also pay taxes, owners insurance, mortgage insurance and possibly repairs for the maintenance of your home. This gives you an idea of how much you need to have available to know how much house you can afford.

4. Put your paper. Before visiting a mortgage broker, you should create a file with the following documents: W2 statements, last year's tax returns, your last 3 months of bank statements, your last 2 months pay stubs (unless you are self employed). If you have a bankruptcy in the past, including all the information collected.

5. Speak to a mortgage broker. Once you have established your credit report, know that your credit score and have a good way, a mortgage broker can help you find the best mortgage for you. The agent shows you the various options between an adjustable rate mortgage or a fixed rate mortgage. He or she will also be able to tell you how much your monthly payments will be and what kind of interest is available with your current credit scores. This is where your income comes into play. The banks will want to see that you have a reasonable debt to income ratio. You do not have more than 30% of your income towards housing payment.

Once you have with your husband, you will receive, for a mortgage. This pre-approval letter is signed by all sellers to know how much your mortgage has been approved, and it also shows that it seriously as a buyer. Now you can have the fun part of buying a house, dealing with them!

Michael Russell

Your Independent Mortgage Guide.