How do I know if I can get a
loan? Article
By: Jim Pendleton - MrMortgageTM
How do I know if I can get a
loan?
- Answer: Use our simple mortgage calculators to see how much mortgage you could pay -
that's a good start. If the amount you can afford is significantly less than the cost of homes that
interest you, then you might want to wait awhile longer. But before you give up, why don't you contact a
real estate broker? They will help you evaluate your loan potential. A broker will know what kinds of
mortgages the lenders are offering and can help you choose a lender with a program that might be right
for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply
for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can
afford to spend, and it will speed the process once you do find the home of your dreams.
What do I need to take with me when I apply for a mortgage?
- Answer: Good question! If you have everything
with you when you visit your lender, you'll save a good deal of time. You should have: 1) social security
numbers for both your and your spouse, if both of you are applying for the loan; 2) copies of your
checking and savings account statements for the past 6 months; 3) evidence of any other assets like bonds
or stocks; 4) a recent paycheck stub detailing your earnings; 5) a list of all credit card accounts and
the approximate monthly amounts owed on each; 6) a list of account numbers and balances due on
outstanding loans, such as car loans; 7) copies of your last 2 years' income tax statements; and 8) the
name and address of someone who can verify your employment. Depending on your lender, you may be asked
for other information.
- Answer: You can finance a home with a loan from a
bank, a savings and loan, a credit union, a private mortgage company, or various state government
lenders. Shopping for a loan is like shopping for
any other large purchase: you can save money if you take some time to look around for the best prices.
Different lenders can offer quite different interest rates and loan fees; and as you know, a lower
interest rate can make a big difference in how much home you can afford. Talk with several lenders before
you decide. Most lenders need 3-6 weeks for the whole loan approval process. Your real estate broker will
be familiar with lenders in the area and what they're offering. Or you can look in your local newspaper's
real estate section - most papers list interest rates being offered by local lenders.
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