Applying for a Mortgage

As any person who has applied for a mortgage will tell you, the whole process is pretty tedious. There are just so many things that you have to do and pay for that it might make a lesser person give up on his dreams of owning a house of his own. It might be complicated and there may be a lot of things to do but it can be done. People have been doing it for years and for the first timers here are some things that you may want to start doing before you pass your application for to the lenders.

First thing, make sure that you have money for all the fees and costs. There are the application fees that the lender might charge to process your mortgage application plus the down payment that you will pay. This down payment depends on how much the value of your property is. Next is the closing fees, you may shell out $2000 to almost $3000; not so huge you might say but it is a substantial amount when added to the down payment. Plus, the lender will want to see that you have some money tucked away in the bank and he may ask that you use that money for mortgage payments. So you better save up as much money as you can starting today.

Next thing that you will have to do is check your credit score. This isn't very tedious but it can be time consuming. You can get your credit score easily enough through a couple of websites but you will need some time to improve your credit rating and also if you need to have some corrections done to your credit report. This is the part that takes up a lot of time so it would be best if you started on this very early as well. You might be wondering what a bad credit score has to do with your mortgage; to put it bluntly, no lender likes to see a bad credit score and this bad credit score might very well squash all your chances of getting your loan approved.