Preparing to get a mortgage

Green Escrow Services | American economy

A mortgage is essentially a loan so that you can buy property. Obviously, it’s for a large sum of money so the lender wants to be sure that you’ll be able to meet your payment schedules. When applying for a mortgage you’ll need to supply at least the following:

  • Income verification: Formulas are sued to make sure that you’ll be able to make your monthly mortgage payments as well as your other financial obligations.
  • Credit history: Poor credit often means you’ve defaulted on past payments while a strong score indicates that you are responsible and can handle your finances.
  • Employment history: In the financial world consistency and stability are important.
  • Bank statements: Even those with a good job and income can overspend. It’s important for the lender to know that you can consistently meet your obligations.
  • Home inspection: The condition of property you intend to buy can also a factor when you are looking for mortgage.

Finding the best home loan

Green Escrow Services | American economy

When it comes time to look into mortgages it pays to search as many avenues as possible.

  • Gather information: All loans require basic information so it makes sense to gather the documents etc. for the preapproval process. This includes banking, checking, savings, investment information; debt obligations – credit cards, car loans, student loans child support, etc.; two years of tax returns – W-2s, 1099s, etc,; employer and salary and employer information; down payment information.
  • What kind of loan: Fixed rate, adjustable-rate loan (ARM), Federal Housing Administration (FHA), VA loan, Other (USDA Rural Development loan. Bridge loan, etc.
  • Investigate lenders: Big banks, neighborhood banks, credit unions, savings and loans, online mortgage lenders, provate lenders

Homebuyer Regrets

Green Escrow | buyer regrets

In a recent Home Buyer Reality Report, homeowners were asked about their buying experience regrets. 20 percent reported that their biggest buying regret was not saving more for the down payment. Many also wished they had purchased a larger home, although, interestingly, only 6 percent of baby boomers thought their home was too small.

14 percent of those responding wished they had done more mortgage comparison-shopping. In fact, 41 percent said they weren’t as aware of the mortgage lending process as they would’ve liked. Another common regret is they many were not as familiar with their own credit score as they would’ve liked.

Clearly, many homebuyers wish they had had more education and had done better planning before they purchased.

Do you have any regrets?