If you think you may want to buy a home, the value of pre-planning and taking action now can't be overstated. Doing four simple things will take you down the road to success when you apply for a mortgage loan and greatly improve your chances of having your application approved. Just remember, simple isn't always easy.
1. Demonstrate Financial Readiness
This means having the cash you'll need for a down payment and other expenses, such as closing costs, inspections, and application fees. It means having a good credit score that shows you've paid your bills on time. And it means not having too much debt since the lender will be looking at your debt-to-income ratio.
2. Demonstrate Stability
Changes to your employment or income status can impact the mortgage process. Taking a lower-paying job or quitting your job to become self-employed means the lender will reevaluate whether or not you still qualify for the loan.
3. Know What You Can Afford
Lenders decide how much they're willing to lend you based on your income and credit report, but you have the best idea of how much you can really afford without stress. Be smart and keep your housing expense comfortably within your means.
4. Meet with an Advisor
A good mortgage advisor can help you select the right home loan and loan rate. Most home loan applications follow a general process. While it can vary depending on the details of your particular situation, it typically takes several weeks for approval.
Getting pre-approved for a mortgage loan before looking at houses is emotionally and financially responsible. The process will tell you how much you can afford and the interest rate you’ll pay on the loan. The lender will provide a pre-approval letter, which means funds will be available as soon as a seller accepts your bid.
Catlin Bank may be able to help you with a residential mortgage. They have been serving the residents of Vermilion County. The bank has offices in Catlin and Georgetown, as well as ATMs in Catlin, Georgetown, and Danville.
They are committed to providing personal service with a personal touch for a full range of banking services includes residential mortgages, construction loans and various consumer loans, direct deposit, IRAs, certificates of deposits, on-line banking, debit cards and banking by phone. Contact Catlin Bank about applying for a mortgage loan.