AUSTIN, TX – There’s no denying that right now is a great time to buy a home in Austin or anywhere in the United States thanks to LOW mortgage interest rates that have continued to remain low in spite of economists urging the Federal Reserve to raise them.
If you plan on applying for a mortgage loan here are some important things you need to know before applying for a mortgage:
Get Your Credit Score in Order
This is top on the list of things to do before applying for a mortgage loan because your credit does affect the mortgage interest rate you will qualify for.
To find out what your credit score is right now go online and order a free copy of your credit report or a 3-in-1 copy of your credit report so you can find out what all three of the credit bureaus are reporting about you.
During the process of reviewing your credit score, you may find that one or more items are being inaccurately reported about you. To fix these items you will need to file a dispute with each Credit Bureau and the dispute process can take up to 30 days or longer so it’s best to do this as soon as you order your credit report because your lender may not be able to move forward with your mortgage application until the dispute process is complete.
Prepare All of Your Financial Paperwork
After learning your credit score you will need to prepare a packet of all your financial paperwork. These documents must be from the last 90 days and should include your income tax returns, bank statements, W2’s and other documents showing your proof of income.
Pay down Your Debts
One very important thing that could make qualifying for a mortgage loan difficult is your debt-to-income ratio which should be no more than 43% because mortgage lenders want to make sure that you will have the ability to repay your mortgage loan each month while paying all of your other regular bills at the same time.
To learn more tips that you should know before applying for a mortgage loan contact the Kent Redding Group today by calling us at (512) 306-1001 or CLICK HERE to connect with us online.