When you were growing up and dreaming about the ideal place you would live, the last thing that you thought about was how you were going to pay for it! After all, how can a child know anything about a mortgage?
It isn’t until you get older and realize that owning your dream home isn’t that simple and, more often than not, a trip to a mortgage lender’s office is required.
To help you prepare for such a meeting, below are some tips to consider.
Make Sure Your past Is Accurate
The first thing which any lender is going to do is to check your financial history to see what your previous credit activities are like. The last thing that you want to be doing when they perform this search is trying to explain any discrepancies or irregularities with your credit file.
To prevent this scenario, before your meeting, obtain a copy of your credit rating for yourself and go through it with a fine-toothed comb, paying attention to the following:
- An address which you don’t recognize
- Your name is misspelled
- Debts which you don’t owe
- Any applications for credit which you don’t recall making
Each of these is an indicator that there is a discrepancy with your credit history which could be negatively affecting your resting and perceived creditworthiness. If you see any of these or anything else which just doesn’t sit right with you, challenge it with your credit history provider and ensure any errors are corrected prior to your meeting.
Time to Ensure Your Present Is Present and Accounted For
Now that you have your financial history taken care of it’s time to pay attention to your financial present.
The first place to start is with a formal budget which clearly shows your income streams matched against your outgoing expenses. When you are calculating your incomes streams, be sure to include any investment which is expected to mature along with any incremental interest which is paid to you throughout the year and can be considered reliable income.
When you are creating your expense categories, be sure to keep it at a macro level. For example, your lender doesn’t need to know that you take advantage of a nivea coupon from Groupon Coupons each month to keep your personal health items budget down, they just need to know how much you spend on personal items.
The same goes for all other items on the list, be sure that you don’t include too much detail.
Once you have everything sorted, get the following documentation ready:
- Confirmation of your pay/Stubs
- Any statements which show the ability to save consistently
- If there are any debts, statements which outline their progress and expected completion date
- Three months of statements for any and all lines of credit
Having this information ready at the first meeting will help to speed up your application and show that you know what you are doing, helping to give the lender confidence in your application.
Time to Think About the Future
When you sit back and take a look at your budget, be sure that you feel comfortable that you can take on the financial responsibility of a mortgage.
For example, if you have a number of smaller debts which are likely to be paid off within the next three months then consider waiting to apply for a mortgage until these are paid off, as they won’t appear on your credit report any longer and will make you look much more appealing.
Each lender will have their own lending requirements, but you can rest assured that following the advice above will be a great help for your first general meeting.