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Tips for mortgage borrowers

Published On: Apr 18 2014 10:09:26 AM CDT
Mortgage

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If you’re thinking about buying a house in the near future take a look at these tips on taking out a mortgage:

Keep your records: Lenders are going to be diligently checking borrowers' finances to make sure they have the ability to repay their home loan. To help with the process, keep documents of your finances. Some key items to keep on file include: tax returns, bank statements, W-2 forms and investment accounts.

Monitor your credit: To get a loan currently, you need to have a good credit score. Make sure you monitor your credit history and make sure everything on your credit report is accurate.

Take advantage of low rates: If you’re planning on buying a house soon, try to do it while the interest rates are low.

Buy within your means: When selecting a home, don’t commit to a mortgage that you can’t afford. Just because you were approved for a certain amount doesn’t necessarily mean you can afford the monthly payment. Take inventory of all of your monthly expenses and then find a mortgage amount that you’re comfortable borrowing.

Know your rights: As a borrower, make sure you know all of your rights when it comes to your mortgage. Do your homework and know all of the latest rules associated with mortgages.