Monday, June 15, 2015

The Cliff Note Version Of Obtaining A Mortgage Loan

The real estate market is currently in full bloom.  Mortgage rates had been at an all time low however recently have started to come back up.  This makes people want to buy a home sooner than later.  Everyone is looking to pay the lowest interest rate possible on a new mortgage.  With mortgage rates slowly rising many people find now is the time to buy a home.  The steps below are the cliff notes when it comes to finding a mortgage while the rates are still at record lows.
Get Your Credit Rating Ready
Your credit score is one of the biggest factors when determining if you will get approved for a home loan and if so what type of interest rate you will qualify for.  If you know you are going to be looking for a home and therefore a home loan it is important that you get a copy of your credit report and start working on improving your credit score.  Errors on your credit report, applying for more debt and several other factors can affect your credit score.  This in turn can make a huge difference when working to achieve the lowest interest rate on a new mortgage loan.  It can also be the difference between getting approved and not getting approved.
Improve Your Debt-to-Income Ratio
Take inventory of how much you have going out verse how much money you have coming in.  This is another large consideration when applying for a loan.  It is important to reduce your debt before applying for a mortgage.   This can be done by making larger payments on credit card debt, car loans and outstanding loans to help boost your ratio.
Start Saving For a Down Payment
A large down payment can save you big bucks immediately.  Without a decent down payment you most likely will end up paying a PMI amount each month with your mortgage payment.  This can add up to an extra payment that could be used towards the principal of your mortgage but instead is being wasted on mortgage insurance.   Most mortgages require a down payment that falls between five and twenty percent to get the best possible interest rate and avoid paying mortgage insurance.
Find a Mortgage Lender or Broker
When looking into buying a home an experienced mortgage lender or broker can completely transform your mortgage experience.  Shop around until you find someone you are comfortable working with.  Find someone who is willing to work closely with you and that works to help you understand the complete home loan process.  Find a lender who is straightforward and cuts through the idiosyncrasies of the process to get you the best interest rate available that you qualify for.
Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at

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