Making the decision to own is one of the biggest decisions in life. Planning and preparation is the key to achieving the goal within the time desired. Be an active participant in the process of home loan, it will be easier for your dream a reality. Here are some tips:
1. Learn about the home loan process. Get an understanding of the role of each party involved. Explore your options for long-term loans. Learn more about the approval process. Find out the time from start to finish and which could cause delays. Banks, brokers and real estate agents often host seminars and homebuyer workshops to educate potential buyers. Make arrangements to attend one.
2. Order a report from three credit bureaus (Experian, Trans Union and Equifax). Check items incorrect, duplicate entries, previous addresses, employment, and surveys. A report can be obtained free of charge every year or for a small fee with a credit report provider.
3. Resolving credit problems that are currently outstanding. Make payment arrangements for delinquent accounts and / or collections. Your lender may ask you to document the state (ie proof of the maintenance arrangements) and provide a written explanation of credit. Send letters with supporting documentation to the credit bureau for corrections. If the problems are solved, make sure to document when and how it has been decided. If there are no credit problems, then you are ahead.
4. Plan cash to cover the costs of payment and closing. Set a realistic budget for your new purchase. Analyze your expenses and minimize. You will need to document the source of your down payment and closing cost funds. Failure to do so may result in denial of your loan. In most cases, cash on hand is not acceptable. Lenders may also require that funds be seasoned (on deposit) for a specified period of time (ie, 30, 60, or 90 days).
5. Be prepared to provide a lot of paperwork to document the information that appears on your loan application. It will be necessary to document your income, your assets, what affects your credit rating, and other circumstances such as divorce or bankruptcy. Your loan officer provide you with a list that lists the objects that will initially be required for your loan.
6. Be prepared to be actively involved in the process. Help your loan officer by providing as much information as possible about your situation. Withholding information could harm your chances of approval. You may also be required to provide the elements you need to get a third party. Make your best effort to provide additional documentation in a timely manner. Lengthy delays can cause your loan approval to expire. A new approval could result in loans less desirable (or an interest rate higher or lower amount of the loan).
7. Do not make major purchases before or during your presentation of the loan application. This could affect your debt ratios and / or deplete cash reserves necessary.
8. Stay positive. The process can be difficult, but the rewards are great. The better the preparation of pre-application is, the easier (and shorter), the process will be for you.
Source: http://EzineArticles.com/73485
1. Learn about the home loan process. Get an understanding of the role of each party involved. Explore your options for long-term loans. Learn more about the approval process. Find out the time from start to finish and which could cause delays. Banks, brokers and real estate agents often host seminars and homebuyer workshops to educate potential buyers. Make arrangements to attend one.
2. Order a report from three credit bureaus (Experian, Trans Union and Equifax). Check items incorrect, duplicate entries, previous addresses, employment, and surveys. A report can be obtained free of charge every year or for a small fee with a credit report provider.
3. Resolving credit problems that are currently outstanding. Make payment arrangements for delinquent accounts and / or collections. Your lender may ask you to document the state (ie proof of the maintenance arrangements) and provide a written explanation of credit. Send letters with supporting documentation to the credit bureau for corrections. If the problems are solved, make sure to document when and how it has been decided. If there are no credit problems, then you are ahead.
4. Plan cash to cover the costs of payment and closing. Set a realistic budget for your new purchase. Analyze your expenses and minimize. You will need to document the source of your down payment and closing cost funds. Failure to do so may result in denial of your loan. In most cases, cash on hand is not acceptable. Lenders may also require that funds be seasoned (on deposit) for a specified period of time (ie, 30, 60, or 90 days).
5. Be prepared to provide a lot of paperwork to document the information that appears on your loan application. It will be necessary to document your income, your assets, what affects your credit rating, and other circumstances such as divorce or bankruptcy. Your loan officer provide you with a list that lists the objects that will initially be required for your loan.
6. Be prepared to be actively involved in the process. Help your loan officer by providing as much information as possible about your situation. Withholding information could harm your chances of approval. You may also be required to provide the elements you need to get a third party. Make your best effort to provide additional documentation in a timely manner. Lengthy delays can cause your loan approval to expire. A new approval could result in loans less desirable (or an interest rate higher or lower amount of the loan).
7. Do not make major purchases before or during your presentation of the loan application. This could affect your debt ratios and / or deplete cash reserves necessary.
8. Stay positive. The process can be difficult, but the rewards are great. The better the preparation of pre-application is, the easier (and shorter), the process will be for you.
Source: http://EzineArticles.com/73485
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