by Dan Wolf
on Wednesday, January 27th, 2016 at 4:59pm.
When interest rates are this good, a lot of people feel the need to rush their home buying ventures. However, getting a mortgage is an involved process. You are not going to find the perfect home and be able to get a mortgage the next day. Here are some tips to make sure that you ready to be preapproved for a mortgage!
Look at your credit score. Make sure that it appears to be accurate. Are there any unpaid debts on there that shouldn't be? Are there inconsistencies that you need to look into? Be sure to start taking care of any potential issues now.
Work on paying off your debt. You won't be disqualified if you have some debt, but creditors won't approve you for a mortgage if you have too much. Start paying off as much of your debt as possible now.
Start saving for a down payment. Typically ou can't get a mortgage without a down payment - most lenders require at least three to five percent down. You'll also have closing costs to think about, plus some other miscellaneous costs associated with house hunting. You should also remember that the more money you put down, the less your monthly payments will be!
It is important that you are ready to be approved for a mortgage before you start looking at homes. Start thinking about homes months, or even years, before you are ready, and work hard at staying out of debt and saving for a down payment. The more you save, the better off you will be!