Tips for Getting a Mortgage When you Need It

<h1>Tips for Getting a Mortgage When you Need It</h1>Author: <a title="Jim Olenbush" href="http://www.articlesbase.com/authors/jim-olenbush/20067.htm">Jim Olenbush</a> So you are ready to buy your dream home. If you're serious about buying in the near future, here are a few ways to make sure you'll get a mortgage when you need it.

First, submit a pre-qualification application to the loan officer or financial institution you have in mind. Oftentimes, going with the bank you already deal with will be your best bet, as they'll have some records of your finances already. However, you need to get the best deal possible, so you might have to look elsewhere to get it. Talk to several lenders to compare fees and interest rates. Don't be too hasty and jump on the first offer you get.

You want to avoid signing up for a loan that seems too good to be true. If a lender offers you a mortgage that doesn't require proof of income, be leery. These loans often end up having huge interest rates attached to them. In fact, it is this kind of lending that has led to the recent surge of home foreclosures. When the teaser interest rates adjust a year or two down the road, loan payments skyrocket, and the homeowner struggles to make ends meet.

The bank's goal is to get a payment from you every month—re-payment on your mortgage loan. They will asses your mortgage eligibility based on the maximum you can afford to put towards your mortgage each month. You will need to provide the lender with proof of employment and income. Be sure not to do anything that will jeopardize your eligibility for the highest mortgage possible. Here are a few things that can do that:

Let's say you buy a car or other big ticket item. Maybe you think you can afford to make payments on both a vehicle and a mortgage, but a large existing payment will dramatically reduce the amount of mortgage you are eligible for. Decide which you'd rather have, because it is a rare person who can afford both. Knowing this, your existing vehicle, or even a new-to-you used car, becomes far more appealing.

Whatever you do, don't change jobs. An unstable employment record is one of the biggest no-no's in the mortgage industry. Lending institutions need to know your income is stable, and in general, at least a year at one job is what it takes to assure them you have good financial footing. Even a transfer can leave you on shaky ground, so be careful to time your home purchase carefully.

Also, be sure to maintain good credit. Pay off as many debts as possible, and be sure to make all of your bill payments on time. To stay on track, it's a good idea to set up automatic bill payments for your non-variable monthly expenses. This way you don't have to worry about remembering which bills still need to be taken care of. It's also a good idea to save your credit reports to make sure that no mistakes are made, and so that you know exactly where you stand on all outstanding debts.About the Author: This article was written on behalf of Jim Olenbush, fully accredited <a href="http://www.jimolenbush.com/about.htm" target="_blank">Austin Texas Realtor</a>. Contact him for all your <a href="http://www.jimolenbush.com/" target="_blank">Austin real estate</a> needs.Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/real-estate-articles/tips-for-getting-a-mortgage-when-you-need-it-265550.html" title="Tips for Getting a Mortgage When you Need It">Tips for Getting a Mortgage When you Need It</a>

So you are ready to buy your dream home. If you're serious about buying in the near future, here are a few ways to make sure you'll get a mortgage when you need it.

First, submit a pre-qualification application to the loan officer or financial institution you have in mind. Oftentimes, going with the bank you already deal with will be your best bet, as they'll have some records of your finances already. However, you need to get the best deal possible, so you might have to look elsewhere to get it. Talk to several lenders to compare fees and interest rates. Don't be too hasty and jump on the first offer you get.

You want to avoid signing up for a loan that seems too good to be true. If a lender offers you a mortgage that doesn't require proof of income, be leery. These loans often end up having huge interest rates attached to them. In fact, it is this kind of lending that has led to the recent surge of home foreclosures. When the teaser interest rates adjust a year or two down the road, loan payments skyrocket, and the homeowner struggles to make ends meet.

The bank's goal is to get a payment from you every month—re-payment on your mortgage loan. They will asses your mortgage eligibility based on the maximum you can afford to put towards your mortgage each month. You will need to provide the lender with proof of employment and income. Be sure not to do anything that will jeopardize your eligibility for the highest mortgage possible. Here are a few things that can do that:

Let's say you buy a car or other big ticket item. Maybe you think you can afford to make payments on both a vehicle and a mortgage, but a large existing payment will dramatically reduce the amount of mortgage you are eligible for. Decide which you'd rather have, because it is a rare person who can afford both. Knowing this, your existing vehicle, or even a new-to-you used car, becomes far more appealing.

Whatever you do, don't change jobs. An unstable employment record is one of the biggest no-no's in the mortgage industry. Lending institutions need to know your income is stable, and in general, at least a year at one job is what it takes to assure them you have good financial footing. Even a transfer can leave you on shaky ground, so be careful to time your home purchase carefully.

Also, be sure to maintain good credit. Pay off as many debts as possible, and be sure to make all of your bill payments on time. To stay on track, it's a good idea to set up automatic bill payments for your non-variable monthly expenses. This way you don't have to worry about remembering which bills still need to be taken care of. It's also a good idea to save your credit reports to make sure that no mistakes are made, and so that you know exactly where you stand on all outstanding debts.

This article was written on behalf of Jim Olenbush, fully accredited Austin Texas Realtor. Contact him for all your Austin real estate needs.

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/real-estate-articles/tips-for-getting-a-mortgage-when-you-need-it-265550.html

Article Tags: Mortgage Information, Mortgage Qualification, Pre-qualified Home Buying

Related Videos
Related Articles
Ask / Related Q&A

Play

Learn about Buying a Home

Play

Learn how to Decide on Price for a Home

Play

Learn about Renting vs. Buying a home

Play

Home Buying Strategies for Military Families

Play

Bad Credit Mortgages

Latest Real Estate Articles
More from Jim Olenbush

How to paint a vinyl Window Replacement, Northern Virginia?

By: John Cvetkovic | 27/11/2009
The new, replaced windows attract a lot of emphasis on to them and thus they have to be kept in the best of forms. The vinyl window panes get eroded with time and thus they need to be colored again. The Windows replacement, Northern Virginia companies take care of this aspect, but still, you will be required to take efforts to color your vinyl window panes.

How to construct a Virginia Deck?

By: John Cvetkovic | 27/11/2009
The process of building up a deck can be a hectic process. The deck builders in Virginia can charge you inappropriate amounts. But, what if you do not have the knowledge to build it up, on your own? Or, what if there are a few ambiguities regarding the deck layout and material? You have no option to leave your deck half built or to bring in any of the deck builders in Virginia as that will be an added expenditure.

Get a Virginia window replacement and experience the warmth for many more years

By: John Cvetkovic | 27/11/2009
Virginia is quite an eminent state of the US, a cosmopolitan in true sense. There are many people living and there is hence a very well developed residential plan of the city. Hence the circuit of markets and service providers are also well developed and widespread.

Fact-file of Northern Virginia Deck

By: John Cvetkovic | 27/11/2009
The Virginia deck and fence manufacturers have got a very difficult task to do. On one hand they have to deal with the appropriate design of decks, for them to look good, while on the other, they need to manage the mechanics of the deck to save it from instability. These Northern Virginia Deck builders have a particular format on which the decks are built up. Let us have a look at the guidelines set forth.

Doing Virginia window replacement in a professional way

By: John Cvetkovic | 27/11/2009
The Virginia window replacement is a task that most of the people do not insist upon. They only do this replacement if either the existing window panes get deteriorated with time or when they want to give their house a new look. The best thing about these windows is that they can easily be replaced and also can be distinguished very easily.

Dining out at Virginia Kitchen

By: John Cvetkovic | 27/11/2009
A kitchen is literally defined as a place for preparing meals. Of all the different kitchens you will find in Virginia, the Virginia Kitchen by Waffle King is one the best places for a fine dining experience. It is located in Herndon, at 450 Elden Street. It is open all week round from Monday to Sunday and treats you to a great breakfast, brunch and lunch menus.

Consult Virginia Deck Builders for your dream deck

By: John Cvetkovic | 27/11/2009
The decks are something that can be termed as something that can convert your dream to reality. Looking out for extra rooms to accommodate your loved ones, or making porticos for your car-decks in Virginia will do them all. They can be designed to make an indoor swimming pool or can be treated as a party spot in the backyard.

Benefits of Virginia Window Replacement

By: John Cvetkovic | 27/11/2009
The Virginia Window Replacement is one of the best options in present time for you to renovate your house and give it a new look. You can even save money by contacting one Virginia replacement window contractor and arrange for a replacement window. These windows have space for affixing two to three glass panes. They can provide you excellent insulation and free you from any added expenditure on heaters and air conditioners.

Austin's Reputation Gets Another Boost

By: Jim Olenbush | 19/02/2008 | Real Estate
It's no secret that Austin was chosen by Money Magazine as the No. 2 Best Big City in their "Best Places to Live" index, and was also picked from almost 400 U.S. cities by Moody's Economy and was rated #1 for the economic vitality index.

Austin, the "live Music Capital of the World"

By: Jim Olenbush | 17/01/2008 | Real Estate
Austin, the "Live Music Capital of the World", is a slogan based on the very essence of this city that is supported by residents and local government alike. There are virtually hundreds of venues where locals and visitors can enjoy every type of live music imaginable.

Austin Economy Defies National Trend

By: Jim Olenbush | 10/01/2008 | Real Estate
Yup, its true folks! Austin is not buying that woebegone story that everyone else is reading. The latest reports show that the "Live Music Capital of the World" is proving that it still rates as a residential retreat and a bustling business center.

First Time Buyer's Dream

By: Jim Olenbush | 02/01/2008 | Real Estate
Well, the latest news should get those buyers moving and out into the market while they still can. The credit squeeze has been predicted to get worse before it gets better.

Austin Condos Go Batty

By: Jim Olenbush | 23/11/2007 | Real Estate
Every summer night, hundreds of people witness one of the most spectacular wildlife displays in any major urban center. Rising like a black cloud of birds at sunset, the colony of mother bats and their pups take off over Ladybird Lake (Town Lake) and into Texas hill country in search of food.

Tips for Getting a Mortgage When you Need It

By: Jim Olenbush | 22/11/2007 | Real Estate
So you are ready to buy your dream home. If you're serious about buying in the near future, here are a few ways to make sure you'll get a mortgage when you need it.

The Basics of Home Staging

By: Jim Olenbush | 14/11/2007 | Loans
Never underestimate the importance of preparing your home for showing. If your home is up for sale, staging is of ultimate importance, and can net you thousands in profits after your home sells. A well staged home will attract buyers even if there is a surplus of homes on the market.

The Heart Break of Home Selling

By: Jim Olenbush | 14/11/2007 | Real Estate
When your home is for sale, you probably have mixed feelings. You may be excited to move, and looking forward to what is coming up in your life. Chances are, though, you are also feeling a bit sentimental about the place you've called home for some time. While you feel like you know the home best, and can tell viewers all about it, the truth is, this is a job best left to the Realtor®.