Getting a mortgage would be one of the first steps that you have to do in order to get your dream home. But applying for a mortgage is not a walk in the park. It would take weeks, or even months, for your application to get approved. It’s a grueling task, but it’s all worth it. Mortgage application in all states, including Alabama, is still subject to approval. But how do you secure your mortgage?
The home buyer should prepare all the necessary documents and paperwork that is required for your loan application. Lenders will review this documents when underwriting your mortgages due amount. This is also a proof of how consistent you are in paying your bills or other expenses. Some of the necessary documents that are needed are tax returns, W-2s, bank statements, documentation of other assets, and investment accounts. These are all needed to prove your financial capacity to pay for your loan.
Mortgage rates are very much subject to change, depending on the housing market’s movement. So try to ask your lender if you can have the mortgage rate that was discussed to be locked in. In this way, you don’t get much of a surprise if in case mortgage rate suddenly surges up. However, if in case the mortgage improves and goes down for a bit, try to ask your lender if you can have that changed to a much lower mortgage rate instead. Lenders would usually ask for a fee in order to lock in your rate. It would be advisable to do it after 30 days to make sure that you can get the mortgage rate as low as possible.
Try to look around and see if there are other mortgage companies in your area who can offer a much better deal. All mortgage companies in states like Alabama have their own policies and mortgage plans that can somehow cater to your needs. It would be best to shop around and create a list of all the mortgage companies that you’ve checked and try to compare each of them.
Get your latest credit history from credit bureaus who offer free services for a limited time. Equifax, TransUnion and Experian offers a 30-day free trial to get your credit score. See if your credit scores are more than 680. Borrowers with the credit score of 580 and above will most likely get their mortgage application approved.
Make sure that you don’t overspend and save as much money as you can for your down payment. Mortgage in cities like Birmingham would usually request for a 20 percent down payment.<< Back to the list.
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Primary Residential Mortgage, Inc.
Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.