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How To Obtain A Mortgage

How To Prepare Before You Speak With Lenders

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Step 1. Get an idea of rates and fees. You can do this without providing any personal information at www.MortgageMarvel.com which works with over 200 participating lenders. You will be asked for such information as the property's purchase price, zip code, loan amount you are looking for and your FICO Credit Score. (The more advertised LendingTree offsite link gives your information to lenders who may contact you with annoying sales pitches.)

Step 2. Get a fix on your situation and to start pulling together the documentation that will be required by a lender. The more aware you are of your situation from a lender's point of view, the better you will be able to save time finding a lender and negotiating a loan.

The major areas lenders look at are:

  • Your residential history: where you live and have lived, as well as how long you have lived in each location. The longer you lived at each location the better. Lenders will also look at your history of the timeliness of your mortgage or rent payments.
  • Your credit history and current credit store. The better your credit the more likely to get a loan, and at a reasonable rate. To learn how to obtain your credit report, see: Credit
  • Income, including employment history, dividends and interest. Lenders will review the source of your income to determine your ability to repay the money they lend you. Lenders will also consider the length of time you spent at each job (looking for stability) and the amount of your income.
  • Your ongoing expenses. Again the question is whether you can afford to repay the loan while paying your other expenses. In addition to your living expenses, lenders will want to know about other expenses such as alimony and/or child support.
  • Your other assets. The question is whether you have other assets with which to pay off the loan if you can't from your income.

To get a fix on your income and expenses, we provide a Cash Flow chart (income/expense) and Net Worth Chart that you can print or complete and store on line.

Be prepared to explain what happened if  you missed payments, went through a foreclosure, or went bankrupt. Lenders look for reasonable reasons to help them trust you with their money.

Once you have your financial picture in order, look for an ethical lender. Thanks to the internet, you can do that on line as well as by contacting local banks and savings and loan associations. You can also use a mortgage broker who may be able to find you a better deal than you can find on your own. If family, friends or colleagues don't have a mortgage broker to recommend, you can contact your local Board of Realtors to help you find one.


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