Mortgage Anyone?

If you are planning to buy a home or refinance your mortgage, you might be a bit apprehensive about the mortgage application process.  Media reports on the credit crisis and on how banks have tightened their purse strings can make the process seem a bit daunting.

While it’s true that mortgage applicants face challenges not present at the height of the real estate boom, there is some good news you may not be aware of:  30-year fixed rate mortgages are now in the 5% range, or below… some of the lowest rates in over 30 years.  That combined with the tax credits that I wrote about earlier make the news very promising.

There are things you can do now to ease the application process and increase the odds of finding the right mortgage.  They are:

1. Improve your credit.  Standards have normalized and you’ll need a good FICO score to obtain the best rates.
2. Make the largest down payment you can afford, and don’t forget about the closing costs.
3. Gather necessary paperwork to verify employment and other income as well as any assets.
4. Be an educated consumer.  Learn about the various types of mortgages, and for adjustable rate loans, consider the impact if the adjustment reaches its peak.
5. Pay down debts.  The fewer debts you have, the better your application looks to the lender.  Mortgage lenders prefer borrowers who aren’t overleveraged.
6. Once you make an application, respond quickly and fully to any requests you receive from the lender for additional information.

Most importantly, talk to me, your REALTOR®, so that I can connect you with a local mortgage specialist.

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