Thursday, June 13, 2013

Mortgage Loan Approval Tips For Millburn-Short Hills Homebuyers

Are you gearing up to buy a Millburn-Short Hills home? Smart move! Mortgage rates rose again this week, almost reaching 4 percent. This is still relatively low, but they aren’t going back down anytime soon. The sooner you buy, the less money you’ll spend!

As your Millburn-Short Hills real estate agent, I want you to receive the best mortgage rate you can. Did you know that the rate you receive depends on your credit, debt and other factors? The better off your financial situation is, the more likely a lender will give you a loan and a lower interest rate.

So as a Millburn-Short Hills homebuyer, what can you do to ensure that mortgage lenders are happy to help you? Here are some financial areas to work on:
  • Credit score. The higher the score, the better, and if it’s below 700, you might have a hard time getting approved for a loan. To improve your score, the best thing you can do is start paying off debt and paying bills on time. It takes three to six months to improve the score, so find out what your credit score is and get to work as soon as possible!
  • Debt. This directly affects your credit score and what lenders think of you. The more debt you have, the less likely they’ll be to give you more of it through a mortgage loan. Start paying off credit cards, loans, your car and anything else you can lower. If you’re close to paying off the debt, you’ll have better luck with lenders.
  • Income. Lenders will check to see that you have a secure job with steady income. Have old tax returns ready to bring in, along with W-2 forms, pay stubs, bank statements and whatever else they may ask for. If you’re thinking about changing jobs, you might want to wait until after you purchase a home.
  • Down payment. The more money you have to put down on a Millburn-Short Hills home, the better. That means the lender doesn’t have to lend you as much. If you don’t have much saved right now, start making lifestyle changes that will allow you to save every penny you can from now until when you’re ready to buy.
It’s important to remember that even if you have some debt or a small down payment amount, there are still options. Contact me, your Millburn-Short Hills real estate agent! I’d be happy to answer any questions that I can, or turn you to someone who can. When you’re ready to buy, contact me!

Elaine Pruzon
Coldwell Banker Residential Brokerage
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