Ask a home buyer what gets them excited about buying a new house and they’ll talk about imagining their dream home, taking tours and visiting open houses. Applying for a loan or securing financing for that new home, however, isn’t always the most enjoyable process.
Here are some helpful hints to make the loan process easier for you, and let you focus on the fun part—falling in love with your new home.
1) Be Credit Conscious
If you are expecting to buy a home in the future--whether its 2 months, 6 months or 5 years--get a copy of your credit report. Your credit score has a huge impact on your ability to secure financing. Check the report for errors, and get them corrected as soon as possible. There is nothing more disheartening than finding your dream house, and being denied a loan because of an error on your credit report.
2) Start Early
Thinking of buying a home? Consider starting the loan process well before starting your search for a new home. You will get valuable information in this process that will help you find the perfect home for you. How much house can you afford? How large of a loan are you approved for? How will taxes and insurance on my new home impact my monthly budget? Is there anything in my credit report that will be detrimental to my securing a loan?
3) Get Organized
There are several pieces of information that a lender will need from you during the loan process. Having this information organized and ready to go will keep you from getting a headache when you’re short on time. Here is a list of information you should expect to be asked for by your lender:
-Full name, current address and Social Security Number
-Tax information from the previous 2 years
-Previous two month of bank statement
-Previous two months of check stubs
-A copy of your Drivers License
-A brief written summary of your employment including length of employment and income
Having this information available ahead of time will make the loan process much smoother for you and your lender. Additional information may be necessary depending on your specific situation.
4) Ask Questions
The loan process can be intimidating for anyone. If you don’t understand something, ask questions. A good lender should make you feel comfortable with the entire process, including answering any questions you may have. If at any time you feel like your lender is trying to “sell” you on something you don’t want, isn’t making time for you, or is generally making you feel uncomfortable, let them know. There are plenty of lenders available for your use…finding someone who you feel comfortable with is the key to a smooth, worry-free loan process.
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| Dan Hall |
Dan Hall is a Loan Officer for Design Development Mortgage in Fort Collins, CO. Feel free to contact him at dhall@designlend.com or call him at 970-412-8169
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