You’ve heard it’s tough getting a mortgage loan today, and that’s true. You can get approved for financing and obtain a mortgage by using various formulas and strategies. You just have to follow the same guidelines that the mortgage brokers will use to determine your creditworthiness to decide whether it’s time to apply for a mortgage. Even if you are turned down, what you learn from the experience will eventually help you qualify later. And, as the credit market eases in panic, you may even find yourself in a great position to buy a low-priced, quality, home with just the right qualifications the lenders are looking for in a borrower.
If you haven’t checked your credit reports in years, do so before you apply for a house loan. Equifax, TransUnion, and Experian are the main credit bureaus that you need to get credit reports from. Each credit bureau will have different results, so you should get a copy of each. Before you apply for a home mortgage, check all your credit reports to make sure there is nothing that could affect your loan outcome negatively.
After you get your credit report, look at it carefully and if there are any mistakes, you should dispute them right away. You won’t get your actual FICO score when you get a free credit report, for that you have to pay. This is something that you should pay for since the FICO score the lenders require you to have is above 720. You will have a better chance of obtaining a low interest rate and good mortgage terms if this number is higher.
Low income families can look into educating agencies to help them get educated in the home buying process. You will want to check out if you are eligible to participate in any home mortgage and ownership classes to help you resolve issues way ahead of time. You can check with The Department of Housing and Urban Development (HUD) and your state’s Housing Finance Agency for easy resources to find helpful programs. Making sure not to be defrauded, always check your local yellow pages and be sure to check it is a reliable program with your state agencies. These programs also look at your particular situation including your income level, your credit score, and your reasons for wanting to own a home.