5 Tips to Help You Get Approved for a Home Loan

Buying a home at the Lake of the Ozarks can be a fun and exciting experience. But finding the right home is just one step in the process. Getting approved for a home loan is just as important. So to help you get on the right track to be approvable for your first home loan, the best real estate team at the Lake of the Ozarks wants to offer some tips to help you get approved for a home loan!


1. Check Your Credit Score
Having a lower credit score doesn't necessarily prevent you from getting a mortgage loan, but it can definitely affect your chances and your interest rates. Having a good credit score puts you in a position to attract the best deal on your home loan. So it’s a good idea to obtain a copy of your credit report before starting the home buying process. By knowing what your credit report looks like, you can then take steps to improve your credit score if necessary before lenders start looking.

2. Start Saving for a Down Payment
Depending on your lender and the type of loan you choose, your required down payment can range from 2.25% to 20% of the purchase price of the home. Consider coming up with a monthly budget and putting back money automatically from your paycheck into a savings account. There are loan options out there, such as an FHA loan, which helps home buyers who can only afford to make a small down payment, so be sure to look into all of your options.

3. Get Pre-Qualified
Before you begin looking for homes, it's best to know what you can actually afford to avoid looking at homes outside of your budget. The mortgage pre-qualification process is fairly simple, usually just requiring some financial information such as your income and the amount of savings and investments you have. Once you are pre-qualified, you will have a better sense of how much you can borrow and the price range of the homes you can afford.

4. Get your Financial Documents in Order
When you apply for a mortgage, you will need to provide your lender with a number of financial documents. Being prepared can help speed up the lending process. At a minimum, you should be prepared to provide your last two pay stubs, your most recent W-2, your last two years of tax returns, and current bank and brokerage statements. To be sure, contact your preferred mortgage lender and ask them for a list of the required documents they'll need.

5. Be Careful with Your Credit during the Loan Processing
It’s not uncommon for lenders to pull your credit report a second time to see if anything has changed before your loan closes. Avoid doing anything that would bring down your credit score while your loan is being processed. Pay all of your bills on time and don’t apply for any new credit cards or loans until your home loan has closed.

By following these helpful financing tips, you'll be on the fast track to an approved mortgage in no time! When you work with the best real estate team at the Lake of the Ozarks, Team Andy Gibson, you'll have a team of agents to recommend local mortgage lenders to speak with and to help guide you through the process of buying a home at the Lake of the Ozarks. Team Andy Gibson is excited about your decision to buy a home at the Lake of the Ozarks, and we would love to discuss what we can do to help your real estate transaction go as smoothly as possible!


Keller Williams Lake of the Ozarks Realty
858 Hwy 42
Osage Beach, MO 65065 
573-286-5907 Cell
573-348-9898 Office
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Comments

  1. Informative post .Thank you for sharing the information would like to know
    more on instant personal loan online .Home loan process

    ReplyDelete
  2. Hi, nice and valuable blog, In this busy and expensive world, I believe most of the people will go for this loans as they are the life savers at some situation, But i know a place which provide these low interest rate loans & fast cash loans without any hassle and you can get these loans as soon as possible with them.

    ReplyDelete
  3. Great article, I am very interested about land title loan. Thanks for sharing this informative blog post.

    ReplyDelete

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