Lenders Info & Tips
Order a copy of your credit report. - Order and analyze a copy of your credit report. Your lender will also order a copy, but you should see it first. That way, you can clear up any credit problems before you submit your loan application.
Organize your recent tax returns and financial documents. - The lender will need your financial information to determine how much you can borrow. If you don't have all the paperwork, you can get copies by contacting your tax-preparer and other people who deal with your personal finances.
Get contact information from your human resources department. - Find out who is authorized to release information about your employment status. Provide the correct contact name and telephone number to the lender to avoid lengthy loan-processing delays.
Get pre-approved for a loan before you start shopping for a home. The process only takes around 24 hours, and you'll get a head start on finding a loan. If you take the time to get pre-approved:
You know how much you can borrow, so you don't waste time looking at properties you can't afford.
You have an edge when you make an offer, because the seller knows you're likely to get a loan and close the deal.
You save time on closing your loan, because you've already assembled your paperwork.
Don't focus solely on the interest rate - Getting a low rate is important, but you may not benefit from it if you have to pay too many up-front points and other fees. With our 50+ lenders, we help you find the best rate.
Understand the relationship between points and rates - A point is prepaid interest, and each point you pay equals one percent of your loan amount. If you get a $100,000 loan and pay two points, that's $2,000 in points. The more points you pay, the lower the rate you'll get.
Think about how long you'll keep the loan - If you're going to move in a few years, consider an adjustable-rate mortgage since you may be able to sell the house before the rate gets too high. If you plan to stay longer, a fixed-rate mortgage may be an attractive option because your rate stays fixed for the term of the loan.
To improve your chances of loan approval:
Fill out the loan application completely - The lender needs all this information to determine your creditworthiness. Make sure you have the documents you need ahead of time.
Don't go on a spending spree - Before the sale is scheduled to close, the lender may check your credit report for high credit card balances and your bank accounts to make sure you haven't drained them.
When closing the loan, be prepared to:
Bring a certified check or money order for your down payment and closing costs - The seller won't exchange the house keys for a personal check. The escrow officer or closing attorney will have a check from the lender for the amount you have agreed to borrow.