Getting approved for a mortgage loan is not something that is second nature to most of us.  It is something many will only do a handful of times in their lives.  With concern in the market about rising interest rates the spring of 2016 is seeing many first time home buyers jumping in on the real estate scene.

Qualifying for a home loan isn’t as simple as getting a car loan which is something first time home purchasers don’t realize.  Put your anxiety to rest with proper preparations.  Educate yourself on the preapproval process, home buying process, mortgage process in order to less the stress that comes along from those unexpected surprises that occur along the way.

First things first; if you are thinking about purchasing a home anytime soon take a few minutes and pull a copy of your recent credit report.  Your credit score will be one of the most crucial elements in identifying your credit worthiness.  This numbers allows lenders to place a value on how risky lending money to you is.  Don’t assume your credit is good enough to qualify for a home loan.  Take the time to review your entire credit report.  Take time to clean up any errors that exist while working to maintain on-time payments decreasing your overall debt ratio.

Cash is king.  When you are looking to purchase a home it is crucial that you have access to cash.  Mortgage companies differ in the loans that are offered to individuals.  Most companies however require a substantial down payment to ensure that the individual is vested in the purchase.  Without a reasonable down payment home purchasers are often penalized by having to take out private mortgage insurance.  This can add hundreds of dollars to your monthly mortgage payment none of which is applied to your actual mortgage premium.

Stay working at your current job until after you have received a mortgage.  Changes in employment while applying for a mortgage can stop or greatly delay the process.  It is crucial that you stick with your employer and your current income status throughout the mortgage process in order for a smooth transaction.

In the months before obtaining a mortgage preapproval it is important that you work to save money, pay down debt and that you avoid any new debt.  This doesn’t mean you have to have all of your credit cards and loans paid off in order to obtain a mortgage but lenders will look at your debt to income ratio when determining how much you can afford to take on.

Just because you are preapproved for a mortgage doesn’t mean that you have to purchase a home of that value.  It is important that you are comfortable with the payment.  If you are used to traveling or such and will not want to stop doing that just because you now own a home consider that when looking at houses to buy.  It is okay to buy a home that has a comfortable monthly payment over one to fulfill the preapproval amount.  Just because it costs more doesn’t make it right for you.

There is a lot of consideration that go into obtaining a mortgage.  When getting serious about finding a home meet with a local mortgage broker to go over available options and to begin the preapproval process.  This will ensure that you have the right guidance throughout one of the largest financial commitments you will make in your lifetime.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at