When you get ready to sign on for a home mortgage, you want to make sure you are thoroughly prepared. If you're not, then you can end up biting off more than you can chew, or putting yourself up for failure when it comes time to sign on the dotted line. A mortgage is a serious commitment and is a more permanent agreement than any rental agreement you may have had in the past. For this reason, you need to take your home mortgage seriously. Are you ready to get a home mortgage? If you're not sure, then use this guide to assist you.
Have your taxes ready
Have your taxes ready to go so when you do get ready to take on a home mortgage, you have the financial backing to show you are capable of making regular payments. You also want your pay stubs to show you are currently employed and capable of making the payments required of you as part of your mortgage.
Your taxes should go back a few years, and maybe more if you have self-employment. Your mortgage consultant or banker will assist you in getting the right mortgage for your needs.
Have your bank statements ready
Your bank statements need to reflect that you have money in the bank and proper spending habits. You need to prove you can make a sizable down payment on a home if you are shopping for one outside your lending limit. Your banker will assist you in helping you keep your bank statements in good order so when you do find the home of your dreams, you'll be able to buy it right away.
Have your credit cards paid off
In order to get approved for a mortgage, you want to have your credit cards paid off. This is a great way to to ensure that your credit score will be higher and that you can have the debt-to-income ratio that will be more positive for you. If you are not sure about whether you should close your credit cards after you pay them off or what having closed accounts will do to your current credit score, speak to your lender.
Your mortgage will be secured once you sign on the dotted line, allowing you to move into your new home easily. Once you find the home of your choosing, you will have to finalize the mortgage loan process, which is made much easier if you are prepared overall.