Complete Guide When You’re Preparing For A Mortgage In Texas

Get Ready For A Texas Home Loan With These 10 Useful Tips

Part 1

Are you looking to purchase a property after checking your credit? Be one step ahead of the game by reading through the following tips before you go in to see your mortgage broker.

1. Check Your Credit

You should start by checking your credit report as that is also the first thing that most lenders usually do after being approached by borrowers. That point where you are actively trying to demonstrate that you are creditworthy to lenders, so as to increase the likelihood of getting the best deal, is also the best time for you to regularly track your credit. You not only want to ensure that no one is harming your credit score by illegally accessing you’re your credit but also want to ensure that your score is where you want it to and your credit report has no mistakes in it.

2. Prepare Accordingly

You will have a clearer idea of your credit status after consistently monitoring your credit report. Be sure to get any errors or concerns cleared up as soon as possible by consulting the three credit reference bureaus. Keeping tabs on your score over an extended period of time will also demonstrate how your score might be affected if your debt to credit ratio is very high. Immediately investigate common signs of identity theft such as any addresses or accounts included in your credit report that are not yours or you did not open.

3. Do Some Research

While the word research strikes fear into most people’s minds, we included, this time you won’t be reading up on the periodic table or mathematical theorems, as the stakes are much higher now. You have to do everything you can to get the best possible deal as you will not just be acquiring a new home you will also be making a lifelong investment. Before you agree to anything or sign any documents, comprehensively research brokers, rates, and loans. You are bound to be rewarded with a better deal if you get the tedious work done at this early stage.

4. Keep Your Expectations Realistic

You need to keep your feet on the ground regardless of how much you might want to get a new house. All your calculations should be based on the rate you can actually afford and not the rate you are hoping to get; for instance, if you can only be able to afford a five percent deposit avoid pegging your hopes on a lower rate that requires a higher deposit, such as twenty percent.

5. Step Into The Shoes Of Lenders

A borrower’s credit rating is representative of how confident lenders are of being repaid after providing them with borrowed funds; a lender’s decisions regarding the loan amount and rate to be charged are based on the credit rating. Simply put, you are more likely to get the rate and loan amount you want with a higher credit rating.

You can use any of the interactive features on our website or call us anytime to speak to a seasoned mortgage expert directly. We hope to work with you soon! Click here to go to the next article in this series.

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