Mortgages: the Right Way

By: Steve Proski

OK, so you have found "the" house. Now hopefully you have already been pre-approved for your mortgage. Wait, you haven't? Well, this is something you will NEED to do before you enter the bidding for that perfect home. Having your finances in order before the offers start streamlines the purchase process to a level that you cannot imagine. But there are some things that you should do and know before you get the mortgage process moving along. These will help you to get the best mortgage possible and the most capital so you are able to afford the best home possible.

Try to avoid major purchases before applying for your mortgage. Large purchases can effect your ability to make on time payments.

This is one aspect of your financial life that mortgage lenders will check carefully before approving you. So don't go out and buy a new car, big screen TV or the like before getting approved. It does not matter if you can afford it, buying these things prior to approval may affect the bottom line amount that you are able to borrow. Also try to clear up any existing debt load that you still have. This will only free up more capital for your home loan. Large amounts of debt can be a real problem when applying for a mortgage so try to get as much cleared up as you can.

Another thing you may want to keep a tight leash on is potential brokers pulling your credit report consistently. Every time your credit is checked, and inquiry is recorded. If there are no funds attached to the inquiry, lenders could think that its indicative of a denial of credit. It's a much better idea to order the report yourself and have copies on hand if the lenders require them (and they definitely should!) Always be up front and honest with your financial information. Not only is it an offence to mislead lenders but it is something that could end up harming you in the long run if you are unable to meet the payments based on fictitious information.

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