Archive for July 2016

3 Important Things You Need To Lock Down Before Applying Your First Home Loan

Setting off on a journey to get your own home is such an exciting thing. This is because the last thing you will worry about at the end of every month is paying rent. While there is some excitement in buying a new home, there are also a number of challenges that you may face. As you read on, you will learn about three basic things that you need to know to get it right when looking for the most effective finance solution so you can acquire your dream home.

Present your credit report

credit report

This should not worry you at all because you are entitled to at least three credit reports from various credit bureaus operating in your locale. It is important to ensure that you have taken a keen look at the credit reports before you start picking houses. If you are intending to acquire a home with a spouse, they should also bring out their credit reports.

Look for anything that may lead to illegibility when applying for a home loan. Try to see if you can settle any outstanding debts or possibly fix certain errors that may exist in the credit report. If there is any serious issue, you can always liaise with the bureau and you will be assisted.

Boost your savings

If you are planning to get a new home, you should consider boosting your savings. You can simply do that by increasing the amount of money you set aside monthly or periodically by a certain percentage. You should increase your savings because when you apply for a loan, the lender will require copies of your bank statements.

Generally, they are interested in knowing the amount of money that you have in your bank account currently. Note that it applies to all the bank accounts under your name. You will have to be transparent and genuine regarding this matter. This is because you may be required to explain any unusual large amount in any of your bank accounts. If you have less savings, that could still be a problem. Just ensure you have the right amount of savings in your bank, which is achievable by saving a little more.

Look for a good mortgage lender

When looking for a mortgage lender, you should not close a deal with the first lender who offers you a loan. Instead, try to approach several other lenders by either telephone calls or email. Finding several lenders will put you in a position to make the right choice. You will be able to determine if you will do well with a particular lender. Different lenders offer varying mortgage rates, varying fees and terms. Shopping around allows you to get the best deal.

Before applying for a home loan, you need to ensure that everything is perfectly in place. If there is anything that seems unclear, you may consult brokers for further explanation. Real estate agents are also in a better position to help you get a better view of things. Essentially, good credit report, adequate savings and a good lender are the crucial factors that will help you get a good mortgage deal.