Of the many aspects of the home buying process, your first meeting with your potential broker or lender is often the most intimidating. After all, they hold the power to decide whether or not you can even start to look at homes let alone start dreaming about your decorations.
For this reason, it’s important that you are prepared for your first meeting to show them that you are serious. To help you out in this regard, below are some great tips to consider.
Know the Bad Stuff Before They Do
The last thing that you want to do is find out that there are inconsistencies with your credit report which have negatively affected your score and your creditworthiness while you are sitting at the desk with your mortgage lender. This leads to nothing but awkward silences and declined applications.
Prepare yourself by obtaining a copy of your credit report and score and going through the information with a fine tooth comb. Pay attention to the following discrepancies:
- Your name is spelled incorrectly
- An address is listed which you have never lived at
- There is a line of credit which you didn’t apply for
- A previously paid account is listed as overdue and outstanding
Each of these can spell disaster for your credit score and negatively affect your ability to borrow funds. If you see any of these above o anything else which doesn’t seem right with your report, raise it with the reporting agency and have the matter rectified before you sit down to meet your mortgage lender.
Prepare Your Budget
Your broker or lender is going to ask you a range of questions about your current financial situation, such as the details of your income streams, any short and long-term financial obligations you have along with any additional financial items which come up.
Unless you feel that you confidently answer each and every one of their questions about your current finances, it’s best to put it all into a budget and take it with you. When preparing your budget for the mortgage lender, be sure to keep it macro. For example, they aren’t interested in how much money you save each month by using the Groupon Coupons page for Verizon, but they will want to know how much your credit card interest rates are and their required monthly repayments.
Stop and Wait
The last time comes in the form of waiting. If, after you have all of the information above, you sense that you may not be in the best position to take on the financial obligation of a mortgage, it is best to wait. Given that a mortgage a broker or lender is likely to charge you for their time and for processing your application, it’s important that you save the money that you have and wait until you are in a better financial position.
When it comes to a mortgage application, meeting with your l[potential lender isn’t the nightmare experience you see on TV, but it is a meeting which you should take seriously and adequately prepare for using information like the tips above.