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Get preapproved today
By admin | February 18, 2008
Purchasing a new home today? Then get yourself pre approved for a new mortgage before you do anything else. From now on it is imperative to get a mortgage preapproval letter before you start looking for your new home since most real estate agents will not show you any homes if you don’t have a mortgage preapproval letter.
It is also important that you know upfront how much you can afford. Lenders have been changing their underwriting guidelines these days and they aren’t willing to go as high up on the debt to income ratios as they used to previously. So you should know that you have been preapproved to purchase a home for a certain amount before you start looking. Another thing that you should be doing at the same time is to pay down any credit cards that you can and stop charging on them before your credit scores go any lower and you then have credit problems.
After you have been preapproved for a mortgage you shouldn’t get any new credit cards or take out any new loans as that will automatically lower your credit score. Also if you have a low credit score it would be wise to get your credit repaired. You could try to repair your credit by yourself of course, but since you probably don’t know the relevant laws and statutes involved you wont be able to get the negative items removed from your credit report.
With a higher credit score you will be able to negotiate a lower interest rate with the mortgage company and so a low credit score could potentially stand in the way of you and your dream home. Bad credit could always result in your mortgage application being turned down, so do your best to improve your credit record.
Topics: Home Loans, Interest Rates, New Buyers |
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