Before getting a mortgage loan, there are 8 things that you should know.
1. How mortgage loan is related to your credit report.
Make sure that you pay back all your debt on time. When the lenders will let you have a mortgage loan, they will check your credit report and analise how you managed with your debt in the past. The lender will see the possibility whether you would be able to pay back to them although you have your own property mortgage. Before you apply for a mortgage loan, you also should pay off all your debts or make your balances as low as you can.
2. Do research all about Mortgage loans.
Besides having a new house, you are still making a financial commitment that you have to be responsible for 30 years. So, Get the best deal by researching and consulting related experts as much as you can. Especially, the interest rate of cost that you have to pay each month so you should take time to research the interest rate or any condition from each bank or lender.
3. Interest rates of a mortgage loan.
When you apply for a mortgage loan, you have to consider interest rates wisely. Because interest rate is the expense that you must pay back to the lender each month.
4. Be realistic for your affordable price.
Surely, the lender will consider the house price that you can afford. Although you want to buy your beautiful and luxury dream house, but right now let’s get to the realistic world and buy a lovely house that you can pay comfortably first.
5. Be honest to give your true information when applying for a mortgage loan.
If you don’t tell the truth to have an opportunity of getting a loan, you might be a risk situation of discrediting yourself in long term and no lenders will give you any more chance.
6. Understand how mortgage lenders consider and operate.
you should know the higher your credit score is, the easier you will get the amount and rate that you want from the mortgage lenders. That is because your credit score is the important base of the mortgage lenders’ decision towards to your loan amount and interest rate.
7. The large down payment of a mortgage loan is good.
Paying more money down up front will ensure that you pay less each month. And the more you have down payment, the better you have option terms.
8. Self-employed for a mortgage loan.
For the self-employed who owns small business mostly can’t qualify for a mortgage loan, except having been in business for two years. The problem of self-employed is having the too low income because most professional self-employed write much expenses on their taxes to make their gross income much lower than their actual income. The lender will consider that can’t qualify for giving you a mortgage loan.
BANK RATE COMPARE : Mortgage Loan