When it came to dreaming about your ideal home, you never gave any thought to how you were going to pay for it. And why would you? As a child you have no concept of bills or financial responsibility.
When you grow up and become an adult, however, you quickly realize that buying that dream home means applying for a mortgage.
If this is the position that you find yourself in and you would like some tips on how to prepare for your first meeting, keep reading.
How Is Your Past?
The first thing that any reputable lender will do is assess your creditworthiness through a credit check. This is a simple operation they can perform while you are sitting on the other side of the desk. When they do this, don’t be in a position where you need to explain any inconsistencies or outstanding debts which you had no previous knowledge of.
Instead, ahead of your meeting, obtain your own copy of your credit report and go through it with a fine toothed comb, looking out for the following:
- Any instances where you name is spelled incorrectly
- Any addresses which you don’t recognize
- Credit applications you didn’t make
- Outstanding payment you made
Any of the a bove can be a sign of identify theft and can negatively affect your credit score creditworthiness. If you see these or any other inconsistencies in your credit history report, be sure to address is promptly with the credit reporting agency and have the mark cleared and removed.
When you meet your mortgage lender, your credit score should reflect only your true financial history.
How Is Your Current?
The best way to get an idea of your current financial position is to create a budget. Additionally, this is also something which your lender will want to see. When you’re creating your budget, including your income streams against your outgoing expenses, but don’t go into too much details. For example, your lender doesn’t need to see how much save when you use the Groupon Coupons page for 1800 Flowers, but they will want to know the total amount you spend on personal items.
Along with your budget, be sure to bring the following documentation with you:
- Pay stubs or email confirmations
- Bank statements showing a consistent level of saving