Whether you are a potential home buyer looking to find a home of your own, or an existing homeowner looking for better terms and / or interest rates on your mortgage, it is important to know a little more about the process of obtaining the best one. , in the best terms, that suits your needs, priorities and situation. Since the vast majority of people use a home loan to pay for their home, I felt it might help to review a few things to consider early on. With that in mind, this article will attempt to briefly review and consider the 5 steps you may want to consider taking to ensure that this often stressful and stressful process and period becomes somewhat easier and more successful.

1. Check and completely review your Credit Report: Especially in today’s atmosphere and environment, where there is so much identity theft, it is smart to start by doing this. First, check the report to verify its accuracy, etc. Then look at the items and report, the way the lender would. Start by looking at your debt-to-income ratio. The desirable maximum for this changes periodically, but if you keep it at about a third (maximum) you are probably somewhat safe. Prepare about 3 months or more before starting the process and pay off your debt. Don’t wait until the last minute to do it. If you can do this a year or more earlier, it’s even better! Look at the report and consider whether, if you were the lender, you would consider it a good risk.

two. Fix: One of the main reasons to start Step One, as far in advance as possible, is to give you the opportunity to make the necessary repairs and improve your credit rating as much as possible. Be careful not to apply for or take out any new credit during this period, as doing so could damage or lower your credit score!

3. Please wait patiently after steps one and two: Optimally, waiting a year will give you the best results, but you should always wait, at least 3 months or more, after you have made your repairs and / or repairs, and / or paid, until the best position. yourself.

Four. Stay away from any offers of credit, etc., during this period: That offer you get at a retail store, which will immediately give you an additional discount on your purchase, is not harmless, but rather could negatively affect your overall credit. Keep your eyes on the target!

5. Be prepared for the down payment: Most lenders will want to know where your down payment and other funds are coming from. At least 3 months or more in advance, put your likely down payment into an account, where you can clearly provide account statements, proving your ownership, etc. Also, keep in mind that most lenders are looking for borrowers, with a significant amount of other assets, etc.

A little preparation, and paying attention to a few relevant details, will generally make the process smoother, easier, and more successful. If you really want and / or need that mortgage, do your best to be prepared!