Entering the property market with a large gift of money isn’t an easy target, with the majority of home buyers taking on a mortgage. This article has tips on preparing to meet with a mortgage lender.

If you have begun to look for properties you would like to buy then you know entering the market as a first-time home buyer isn’t an inexpensive task. In fact, you have likely accepted that you will need to take on a mortgage for your first purchase. This means that you will need to meet with a mortgage broker or a lender to discuss your options.

Preparing to Meet with a Mortgage Lender

If this sounds like you and you are looking to book a meeting, below is a post from Riva Title Company with some great ideas on how you can prepare for this meeting to help you make it a successful one.

Be Sure Your Past Is Accurate

Whether it’s a lender or a mortgage broker helping you find the right deal, the first thing that each will do is check your credit history and your credit score. This report and accompanying score will not only give your lender or broker a snapshot of what your credit history and your score which suggests your creditworthiness. The last thing that you want to occur is for you to be left trying to explain an outstanding payment or an address which you don’t recognize, as this can work against your application. To help prevent this situation from occurring during your meeting, request your own copy of your credit report and ensure all of the information contained in it is correct, such as:
  • Unrecognized debts
  • An address you have never used or lived at
  • Instances where your name is misspelled
  • Credit applications which you don’t recall making
If you notice any of the above then it can indicate that there is incorrect information your credit file, worsening your credit score and the likelihood of an approved credit application. Be sure to take any of these instances up with your relevant credit reporting agencies prior to your meeting with a lender or broker. Before you settle on a property, be sure to complete your due diligence which includes obtaining a thorough title search and subsequent policy for title insurance in Miami, FL. Title insurance in Miami, FL provides financial protection against any ownership claims made against your property title. To learn more or to start the process, speak with Riva Title Company today at 786-787-7888.

How Does Your Current Financial Situation Look?

Once you are confident that your credit history is correct and shows only your information, spend some time assessing your current situation. The easiest way to do this is by creating a budget which lists your income streams against your outgoing expenses. If you budget in advance for upcoming expenses then be sure to include these as pro-rata amounts in your budget. When creating this, remember that you will be showing this to your lender, so keep the information high level. As an example, your lender or broker won’t want to see your grocery list, just see how much you spend each month on groceries. The same applies to household and vehicle expenses. Once this is completed you can accompany it with the following supporting information:
  • Pay information such as stubs or a tax statement
  • Savings account statements
  • Three months worth of statements for any outstanding debts

Is Now the Best Time to Apply?

Each time that you visit a lender and they either access your credit report or they decline an application, it can lower your credit score and make it more difficult for you to secure a future application. For this reason, before you attend your meeting, be sure that your application is as strong as it can be and consider waiting to apply. For example, if you are soon to receive a bonus in the coming months which you will use towards your deposit, consider waiting until you have this money in the bank and can include it on your application. Similarly, if you expect to use a bonus to pay off a range of debts, then consider waiting until this has occurred, as fewer debts make an application look more favorable.

Protect Your Investment with Title Insurance in South Miami

When it comes to purchasing a home there is no part of your due diligence more important than a thorough title search and policy for title insurance in South Miami. To learn more about how title insurance in South Miami can protect your home against financial claims made against your ownership, speak with an expert today at Riva Title Company by calling 786-787-7888. Available via a one-time fee and only prior to settlement, title insurance in South Miami gives homeowners peace of mind over their property ownership.