How To Prepare Yourself When Applying For A Home Loan
If you are planning on purchasing a house soon, then you will of course want to take all the steps you can to make everything go as smoothly as possible. The first thing you want to do is make sure that you have a credit score that will even be considered for a home loan. If you are just starting out and don't have much credit, or you have a low credit score, then you want to do what you can to improve your score. You also want to take other important steps to make yourself look like a good risk in other ways, so you increase your chances of being approved. This article will help.
Join a credit monitoring agency
False accounts and other information can be put on your credit report that bring down your credit score unfairly. Joining a credit monitoring agency will allow you to review your credit report regularly to make sure you are aware of everything on it. If you notice anything new on your account that isn't correct, then you can also dispute it through the service.
Treat the appointment like a job interview
When you go in to speak with a lender (like those at MCS Bank), present yourself in the same manner you would as if you were going to a job interview. Leave the kids at home, dress professionally, have your paperwork well-organized in a binder, prepare yourself with answers to the questions you know they will ask and don't have a lot of caffeine before you go to meet with them. This will help you to get on their good side and instill confidence in you.
Don't apply for a lot of new lines of credit
Applying for a lot of new credit lines in a short period of time will put a lot of inquiries on your report. This can lead to a decreased credit score as well. Also, opening up too many new lines of credit in the same period can lead to a lower score.
Know what it is you are looking for
If possible, have a good idea of the type of house you want. It's even better if you are able to go in there with an exact house in mind. Let them know what your terms are upfront. As in, the most you have to put down on a house and the most you are willing to pay in mortgage each month. Being prepared can go a long way when it comes to getting approved.