Preparing to Meet a Mortgage Lender

If you are looking to purchase a home and considering taking on a mortgage, AREA Title Agency, Inc has a great post to share which can help you to prepare for your meeting with a lender or a mortgage broker.

Be Sure Your History Is Accurate

Each time that you sit down with a lender, the first thing that they will do is check your credit history and your credit score. Many times, this score is enough for them to decide if they will even continue the meeting. The last thing that you want it for them to find inconsistencies which affect your ability to borrow and secure a mortgage. You can avoid this from happening to you by ordering a copy of your own credit report and going through it with a fine-toothed comb. In particular, look for any instances of the following:

  • Addresses which you have never used
  • Your name is misspelledMortgage Application
  • Credit applications you didn’t make
  • Debts which don’t belong to you

Any of the above can cause your credit score to be affected and lower your creditworthiness, so ensure these are cleared up with your relevant reporting agencies prior to your meeting.

Get Your Current Finances Ready

Once your history is sorted it’s time to think about your current financial situation, as your lender will want to ensure that you are in the position to continue your mortgage repayments. The best way to prepare this is to create a budget which outlines your monthly incomes streams matched against your monthly outgoing expenses. When creating this, remember to keep it high level and categorize items like home expenditure, insurance premiums, and vehicle maintenance, etc. They don’t want to know which type of grocery store you shop at or where your car is repaired. Once you have this, combine it with proof of income, statements regarding your debts, along with any proof you have which displays a consistent level of savings.

Consider If Now Is the Best Time

As soon as your lender accesses your file it can leave a record which can affect your credit score and ability to obtain finance. For this reason, it’s important that you go into each meeting with your finances in the best possible position for an approved application. For example, if you are expecting to pay off two credit cards with an upcoming work bonus, consider holding off on your application until these have been paid. An application with fewer debts will be seen much more favorably than one with debts and a comment that you will soon be paying them off.

Keep Your Title Protected with Title Insurance in Toledo, OH

Before you sign a purchase agreement, be sure to complete your due diligence, including obtaining a thorough title search and title insurance in Toledo, OH. Available only prior to settlement, title insurance in Toledo, OH provides homeowners with financial security over the title of their home. To learn more, speak with an expert at AREA Title Agency, Inc by calling (419) 242-5485.