A Little Prep Goes a Long Way in Securing a Home Mortgage

If you’re ready to buy a home in the Asheville area, a little prep work ahead of securing a mortgage will go a long way in making the process smooth and enjoyable. Here are some tips to set you on the path to success.

Credit score check

First off, check your credit, since this is the first thing potential lenders will do when you apply for a loan. Make sure it’s accurate, and that the numbers haven’t been fraudulently tampered with by someone with access to your credit. If you see inaccuracies, accounts that you didn’t open, or other mistakes, now is the time to take immediate steps to stop what could be identity fraud. And if your credit score isn’t where you’d like it, by taking certain measures you can see improvement in six to 12 months. Most mortgage programs require a minimum credit score of between 580 and 620.

Improve debt-to-income ratio

Next, it’s time to improve your debt-to-income ratio, the percent of your monthly income that goes toward repaying debt. This ratio will dictate whether you can get a mortgage loan. To improve your ratio, it’s important to pay off as much debt before applying for a mortgage, including credit cards, car loans, and college loans. 

Get the loan lowdown

Before you jump into shopping for a home, determine how much you can afford (factoring in down payment and closing costs) and how much you will have to borrow, then research your loan program options. Decide how you want to approach your loan, whether it’s finding the plan with the lowest down payment, the lowest monthly mortgage payment, the shortest duration, a fixed rate, or an adjustable rate.

A key step ahead of home buying is getting a pre-approval letter from a lender. You will need to provide the lender with tax returns, paycheck stubs, financial statements and the like, which the lender will review before deciding how much you can afford. 

Find the perfect agent

To make the home-buying process less complicated and intimidating, it’s important to have a trusted, knowledgeable real-estate agent by your side. Mosaic Realty’s community-minded agents approach your individual needs with respect, honesty and integrity, and take great pride in their ability to deliver results for buyers in Western North Carolina. Mosaic’s client-centered approach is integral to finding the perfect home, neighborhood and lifestyle for your unique needs.

For more information about real estate anywhere in Asheville or the Western North Carolina area, contact us at Info@MyMosaicRealty.com, or call us anytime at 828-707-9556.

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