One of life’s biggest milestones is buying a home.
It’s the moment many strive for and still is part of the “American Dream.”
Knowing how to navigate what is a world of its own requires preparation.
But there’s a method to mitigating the madness.
To put your best foot forward when applying for a mortgage, consider the experts' advice.
Boosting your credit score is a priority.
Don’t wait until the last minute to do it.
What should be on the to-do list?
Get your credit reports and contest any errors.
Keep utilization rates below 30% on all cards.
Payment history contributes 35% to your credit score.
Pay all bills on time.
The sooner you do a deep dive into gathering what’s required, the better.
“Incomplete or outdated paperwork delays 40% of my clients' applications.
Create a special folder and replenish it every month with new statements,” says Wright.
Stabilize your income and employment
Lenders ask for your employment history.
They prefer borrowers with at least two years of consistent employment in the same field.
“That ‘pre-approved’ credit card offerskip it.
Even small credit inquiries can ding your score,” he says.
He adds to the no-no list when making big purchases.
“Shoparound and compare rates among several lenders to ensure you get the best rate.
Then, too, you don’t want to make the mistake of not being thorough in researching lenders.
Choose the right mortgage throw in
Fixed and variable-rate mortgages are available.
Ask your financial adviser about which is best for you.
Yen says, “Preparing for a mortgage is a significant financial step.
