Mortgage Questions Answered

Deciding to go ahead and make that first step is the first step. The best thing you can do is educate yourself. Do some research online. Find several mortgage lenders that have good ratings and find out what they offer. Interest rate percentages may vary, and there are other variables that could make a difference in who you choose. Read the reviews and identify the problem areas, then decide if their services match your needs.

This is an important step. Your realtor is going to be your partner through the entire process and can often recommend a mortgage lender they’ve worked with. Ask friends, family and colleagues about who assisted them in the home buying process and why they recommend them. Once you start a process with a realtor, you are basically under contract.

You are obligated to use them for your real estate needs since they are spending time showing you houses and doing the necessary research. If you find you are unhappy with the progress, though, you can get a new realtor. Sometimes, there is a lack of communication or experience, e.g., your realtor doesn’t negotiate effectively, or you simply do not get along. There also may be fees associated with leaving. It’s okay to move on, but that is part of why choosing the right one from the beginning is so important.

This depends on your financial situation, for the most part. If your significant other is a major contributing factor to approval of the loan, it would be in your best interest to include them. If they have poor credit, scattered employment history and don’t contribute through income, it might be a better idea to keep them off – and you may get better rates. They can be added later through other processes, but it is not required they be on the deed.

This can be pretty extensive. You will need all financial records from at least the past year or more. It’s not uncommon for mortgage lenders to require bank statements, rent receipts and work history be scrutinized. It may seem awkward handing over such personal information to someone you don’t know very well, but it’s the only way they can evaluate whether or not they want to lend to you.

Your credit history plays a major factor in the lender’s perception of your ability to repay the loan. This is one of the first things you should check – and clean up, if necessary. You’re entitled to one free credit report a year, plus one each time your application for credit is declined.

Most lenders expect you to have a particular score, usually above 620, for consideration. Some accept a lower credit score but will charge a higher interest rate. The numbers aren’t the only important thing, though. Even with a decent score, you will be asked to account for any negative marks on it. You can either try to get them removed or offer a letter of explanation. Try to clean up your credit report before you start the process.

A loss of income is always a scary thing, but it doesn’t mean it’s the end. The first thing to do is contact your lender. Depending on your financial situation, you may need to change some plans and that may include going for a smaller loan. Together, you can evaluate any other income streams, and you might even be able to refinance for a lower payment if you are already in your home. If you find you are at risk of foreclosure, there are programs that can help ease the burden while you seek new employment.

At Galaxy Lending Group, we put our customers first. Whether you are a first-time buyer or have run into a situation where you need to refinance, we are ready to put our years of experience to work for you. Call us at 855-595-1233 to see what we can do for you.