Now that we've covered the different mortgage variations, hopefully you have a better idea of which one will work best for your situation. In this section we will give you the tools you need to make sure you and your credit profile are prepared to start the mortgage application process.
This chapter will explain how lenders look at your down payment and credit score among other things, and how these factors can significantly lower or raise your mortgage payment.
- How Mortgage Rates Are Set
The process that lenders use to set mortgage rates is a complex algorithm and differ between lenders, but we do know where the base rates are coming from. This article gives you a quick overview of the process. - 6 Tips To Improve Your Credit Score
Your credit score is one of the biggest factors the lenders use to figure out whether or not you will qualify for a loan, and to set your mortgage rate. Raising your score is probably the easiest thing you can do to save yourself a ton of money during the loan so hopefully these quick tips will help to improve your credit profile. - Down Payment - How Much Do You Need?
The amount you use as a down payment on a new home can not only affect the chances of being approved for the mortgage, but also help determine the interest rate and whether or not you will need mortgage insurance. - Paperwork Needed For Mortgage Application
Having all of the right paperwork in order before starting the application process is a vital piece for being approved, and for your own peace of mind. The exact requirements will depend on the lender, but this list covers the most requested items.
