Are You Mortgage Ready?

 Are You Mortgage Ready?

Get “Mortgage Ready” first… and then proceed with your homeownership plans…

The decision to become a homeowner is never easy when considering the pros and cons of homeownership. After deciding thathomeownership is what you truly want, the next step is to assess whether you are ready to obtain a mortgage or not. Lenders are attracted to prospective borrowers that have certain characteristics. You will want to make sure you possess these characteristics when you go to a lender and request a residential mortgage loan. Unless you are in a financial position that will allow you to purchase a home using your own cash and without borrowing funds from a financial institution, the gateway to homeownership at this junction is attracting a lender. 

Let us explore the characteristics that lenders look for in a prospective borrower.

To attract a lender, you will want to prove that you manage your debt obligations well, have the ability to save funds, and are able to financially sustain additional payments to your current monthly expenses. The ability to manage your monthly debt well is extremely important to a lender. Remember, the lender is trying to decide the level of risk in lending money to you so that you can purchase a home. Indicating on a credit report that you have paid your bills on time, have credit card balances that are at or below 30% of their respective credit limits, have no past due accounts or active collection accounts, and have no derogatory credit items being reported publically such as tax liens, previous foreclosures or open judgments, will mark you as a prospective borrower.

Your job as a prospective mortgage borrower is to make lenders feel that you are trustworthy, responsible, and capable of making timely loan payments. The best way to start doing this is to make sure that you pay your bills on time, manage current debt well, and do not take on more debt than you can afford. Excellent credit history and a sustainable spending plan will drastically enhance your attractiveness to a lender because at that point you will be classified as…Mortgage Ready!!!  

Give us a call to see how far away you are from being mortgage ready…  You might be closer than you think.