The mortgage application process is notorious for being tedious, time-consuming and downright laborious. But it doesn’t have to be that way, and maybe 2018 will change that. In fact, our Mortgage Advisors advise their clients that if you start early and prepare properly, obtaining a mortgage can be easier than it looks.
If you know a home purchase is on the horizon, start readying yourself and your credit early. Begin by pulling your credit report (you can obtain one of these free every year), and tend to any issues. If you have a low score, start paying down your credit card debts and loans to reach lower balances. Your debt-to-income ratio will play a big role in the mortgage rate you’ll qualify for, so this step is crucial. Avoid opening any new accounts or making big purchases right before you apply.
Generally, a good rule of thumb is “the 28/36 rule,” which says your total monthly mortgage payment shouldn’t exceed 28 percent of your income, while your total debts shouldn’t exceed 36 percent. Keep this in mind as you apply for a mortgage with Opes Advisors and scout out homes.
If you think you’ll need a monthly payment on the lower end, work to build up your savings before you submit your application. The more you can put down at the outset, e.g., the lower the loan-to-value, the lower your payment will be.
Opes Advisors needs paperwork to evaluate your financial health and viability as a borrower. Start gathering recent pay stubs, bank account statements, the last two years of tax returns and statements for any savings account or investments. Go through all your statements and note any large deposits or charges. We will likely ask you to explain these items as they go through your application.
Once you’re ready to apply for a mortgage, work with your Mortgage Advisor to find the best loan. We offer a wide variety of programs and rates, and we’ll work together and find the right deal for your finances.
Information is accurate on the date of publication. Please check with a Mortgage Advisor and consult with your tax advisor for current information related to your specific situation.
Programs only for qualified borrows. All borrowers subject to credit approval and underwriting terms and conditions. Programs subject to change without notice. Some restrictions apply.
Opes Advisors, a Division of Flagstar Bank | Member FDIC | Equal Housing Lender