What to Have Ready for Your Loan Application

If you have already begun the search for your dream home then it is likely that you have made an appointment with one, or even a few, loan agents or mortgage brokers. When preparing for these meetings, it is important to remember they are professionals, so make the most of their and your time.

To help you get started, Riva Title Company has a list of items to share which can help you prepare to meet your loan agent or mortgage broker and make the first meeting a productive one.

Assess Your Situation

Don't let the first time that you see the full picture of your financial situation be when you sit down with your agent and see it all on their computer screen. Sit down and lay out all of your incoming income streams and outgoing expenses. The best place is to start with your monthly expenses, then weekly, then daily if needed. If, when you fully realize your situation, you are not entirely comfortable with what you see, don't be afraid to wait until you are in a better position. If you take on a mortgage when you are not in a good financial position for it and you fail to make your repayments, it can worsen your future financial position. It is better to approach a lender for the first time with a solid application, rather than be denied and return again.

Clean Your Credit History

One of the first items which your agent is going to do it check your credit score and related information to learn about your previous credit and repayment history. However, they aren't the only ones who have access to this information. Contact a reputable credit reporting agency and get a detailed understanding of your financial records. If you notice any information which doesn't seem correct or any transactions which you don't recall, query with the agency and have any misinformation or incorrect markings removed before you see your loan agent. Similarly, if you made any credit arrangements which do not appear, this should also be raised. Your credit score is partly determined by previous credit. If you previously had a line of credit and made your regular repayments, this could increase your credit score. An additional note for this tip - if, when you check your credit you can see that a repayment contract is soon to finish, consider waiting to lodge your application. This can be a good way to maximize the amount of disposable income you can put on your application form and better your chances of an approval. Along with your credit application, there are a number of important steps on the path to buying a home - one of them being title insurance. Speak with Riva Title Company at 786-787-7888 and ask about the protection title insurance can provide. If you will be using borrowed funds for your home, your mortgage lender will require this insurance prior to approval.

Can You Continue Repayments?

Just like any investment, your loan provider will want to ensure that you can continue to make your repayment obligations. Any type of security you can provide, the better your application will be. Speak with your employer about obtaining a letter not only detailing your employment and income history but also your projected continued employment. If you own any other investments or business income, collate as much similar information as possible which can show that you expect continued income through these means.

Are You Ready?

Securing a mortgage is a big step on your way to buying a home, so take some time to make sure that you are ready. Review all of the information that you have prepared for your agent and understand where you are now, and what your situation is going to be longer term. Remember that it is better to wait until you are 100% ready before jumping into a mortgage and owning a property.

Secure Title Insurance Before You Settle

Once your application has been approved and you have found your dream home, your mortgage lender will require additional security over the loan. This comes in the form of title insurance. Title insurance provides financial protection, to both lenders and owners, against claims to the title of a home. To obtain title insurance for your purchase, speak with Riva Title Company at 786-787-7888 before you settle your transfer and ask about the benefits of obtaining a title insurance policy. Remember that title insurance can only be purchased prior to settlement of the property.