If you are ready to buy some property and do not have the cash to pay for it in full, you will need a mortgage. Of course, you will have to qualify for it, so you want to make sure that you are doing all you can in order to make the mortgage application process a smooth one. This way, you will be more likely to get the approval that you need so you can purchase the property you want. Here are some tips to help get you started on the right path:
Gather Your Proof Of Income
This can be easy enough if you work for someone else, as you will have pay stubs from your checks. Depending on how far back they want to review your income, you should find a copy of your income tax return for the last couple of years. If you are self-employed, you might need more than just your income tax returns for a few years, but bank statements as well. You can talk with a mortgage broker to see if they have some more insight on the kind of proof of income you can provide as a self-employed professional.
Fix Up Your Credit Report
Even if you have a wonderful income, many mortgage companies still need to take a close look at your credit report. They may look at not only the credit score number but also the details outlined on the report, which explain why your credit score is what it is. This is why it is so important for you to make sure that you are requesting a copy of all of your major credit reports and that you are carefully reading through all of them. File a dispute for anything that is not correct. For example, some of your old debts may be lingering on the report when they should have been removed by now. You might find inaccurate information about the payment history for one of our debts, or you might even find that there is debt listed on there that isn't even yours. The sooner you file those disputes, the more likely it is that all of it will be resolved before you apply for a mortgage.
Start Building Your Savings
While you might have heard about loan programs where people do not need a lot of money as a down payment, until you are absolutely sure that you are going to qualify for one of those, you will want to work on building your savings. You want to be prepared to offer as large of a down payment as possible. If your credit history is less than ideal, having a larger down payment might just be what gets your mortgage application approved.
As you can see, there is a lot of things that you will want to do in order to prepare for the mortgage application. The sooner you get started on them, the better.
