Today, getting a mortgage is easier than it was a couple of years ago. It is, however, still a challenge for Mr. Average American. Foreign buyers, investors and the wealthy that are able to pay cash for a house are currently making up one third of the home purchase market. However, with the average amount of $213,500 for a sale three months ago many of us need a mortgage to get the home of our dreams. Here are some tips in the modern age on how you may turn that dream into “realtory”.
With an Internet connection on every unclaimed surface applications and updates are nowadays just a few clicks away. Start your preparations early. Reports show that even people with high credit scores can find themselves denied a loan. Look at improving your score by starting with knowing what it is in the first place. This can quite easily be obtained online. Check it for any mistakes and have them corrected if need be. The percentage you have used of the credit available to you at any time should be managed so it is less than 30%. Opening up a new card a short time before applying for a mortgage tends to decrease your credit score. The exception is when you are new to credit. Applying for the best credit you may get lowers your score somewhat but could be offset by upping your credit availability as long as this is done six months or more before applying for the loan.
Don’t cause a time-out
Allow yourself more time. One can get most of the information online that will inform you on just how much you need to put down as a minimum. Now try and beat that. Get the saving machine going and allow some time for it to kick in. If your credit score is not that healthy but you can put more money down you could still qualify for a mortgage. The reverse also holds. With a great credit score you can be accepted even if you put less down. Lenders are prepared to talk turkey as long as there is a good balance between the credit rating elements.
Online mortgage applications are becoming the new buzzword. Look around and leverage off technology. Doing most of the application online is only the start. Lenders are now making software available online that allows you, the customer, to be more engaged in the process than ever before. These financial software packages streamline the complex management of the data you have provided. Processing timelines are reduced and a high level of compliance with regulations is achieved. This means reduced costs that are passed on to you.
Any questions you may have regarding the progress of your application can quickly be answered by going online. The entire process becomes more transparent and you are back in the driving seat where you belong. Good luck with your modern day journey in the digital landscape towards your new home. Enjoy the ride!