Tips for Getting a Mortgage for New Boise Homebuyers
on Friday, July 3rd, 2015 at 4:22pm.
Excited about shopping for a home in Boise? While buying a new home is certainly a great option for many people, one of the most important things to consider before buying is whether you are actually able to get a mortgage loan or not. It’s the cold hard truth that many people don’t like to face. They want to buy a property, but it’s not always as easy as walking into the bank and getting a quick approval. Here are some tips that you will want to use when you are buying a home and trying to get a mortgage.
Always Get Preapproval
Before you start looking for a property, you should try to get preapproved for a loan. Why is it so important to get preapproval before you start looking for a property? There are actually a couple of reasons. First, what happens if you find a property in Treasure Valley that you love and believe is the perfect home, only to discover you can’t get the loan you need? It could be heartbreaking. In addition, think about this from the perspective of the buyer. They see preapproval as a sign that you are serious about buying. This can put you ahead of other potential buyers who want the property. Of course, what happens if you aren’t sure you can get preapproval?
How Are Your Financial Standings?
You have to check your current finances to get an idea of whether you might be able to qualify for a loan for your new home in Boise. Check your credit score and consider the overall amount of debt you are carrying. If you have a poor, or even a decent credit score, and you carry a lot of debt, lenders will likely see you are a risk. This means that getting a loan will be difficult, and sometimes impossible. If you are able to get a loan, the rates might be too high to make it worth your while. If your finances are in disarray, which is generally the reason you will not qualify, it’s time to change things.
Improve Your Image for the Lenders
You need to make the lenders see that you aren’t a risk. To do this, you need to improve your credit score. This involves paying down debt and staying out of debt. Over time, your score will improve. It is also a good idea to check the veracity of your credit report to make sure it doesn’t have any incorrect information. If there are issues, you will want to take it up with the credit reporting agencies to get it sorted out. Even small changes can help to bring up your credit score by several points. This can make a difference when the lenders are deciding whether they should provide you with a loan or not.
During this time, you should start accruing more money for your down payment. Some lenders might be willing to work with someone who can put down 10%, but most will want at least 20%. However, the more you have for your down payment the better it looks in the eyes of the lender. It means they are taking less risk with you. It also means you will have less to pay on the home over time, which can result in some nice savings.
Even though it might take some additional time to get your financial affairs in order before you buy, it is well worth it. You’ll be able to get preapproval, and you will be able to get a better rate on the mortgage. Take the time you need to get your finances ready to deal with a mortgage.