It can be scary to try and make sense of financing your new house. There is a lot of information you need to understand before your mortgage financing is secured.
As you go through the mortgage application process, keep paying down debt, and don’t take any new bills on. When consumer debt is lower, you’re able to qualify for higher mortgage loans. If your consumer debt is high, your loan application might be denied. Carrying debt could cost you a bunch of money via increased mortgage rates.
Don’t buy the maximum amount you are approved for. Consider your lifestyle and the amount of money you need to be able to be comfortable.
Before applying for a mortgage, you should go over your credit report to see if you have things in order. Credit standards are stricter than ever, and you may need to work on your score before applying for a mortgage.
The new HARP initiative may make it easier … Read the rest