Getting a mortgage for your new home isn't as difficult as it used to be. It can still be challenging, but the traditional lending requirements have loosened quite a bit over the past few years. Here are some of the top tips to make sure you can get the mortgage you need when shopping for a home.
Pay All Bills on Time
The first and most obvious tip is to pay your bills on time. This will ensure your credit score won’t suffer from delinquencies and late payments.
Eliminate High Interest Debts
If you have high interest credit cards, you should pay off the debt and keep the account open. You don't want to close the account because it will still help your credit if it's open.
Stay at Your Job
Mortgage companies will factor in the amount of time you have been at your current job. If you quit or change careers it could make it harder to get approved. Until you have the mortgage and the house, stay at your current job.
Save for your Closing Costs and/or Down Payment
You want to make sure you have plenty of savings before you get a mortgage and buy a home. Some lenders will allow you to roll the closing costs into the mortgage, but many will require some type of down payment. You should find out how much you will need and start saving as soon as possible.
You never want to start a serious house search until you have been pre-approved for a mortgage. If you do, you could end up falling in love with a home you can't afford. Remember, a pre-qualification isn't good enough. You need to be pre-approved with a letter stating the amount you are pre-approved for.
These are just five of the top tips for getting a mortgage in Nashville. The best thing you can do is find a realtor and a mortgage lender you trust and use them throughout the process.
The Ashton Real Estate Group of RE/MAX Advantage
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