5 Tips For Homebuyers in 2012

It’s a known fact that getting a mortgage loan over the past few years has gotten tougher and tougher. But it doesn’t mean that you can’t get one with an attractive rate. All it takes is to make sure that you are careful with certain factors that go into increasing your chances of a mortgage loan.

So here are some tips that can help increase your chances of getting a loan in 2012:

#1: What’s your credit score?

Most lenders will offer you a credit loan if your score is 680 and above while they will avoid borrowers whose scores are 620 and below. Ensure that you have your credit score in place before even getting to request for a mortgage loan.

#2: Get your documentation in place

Bank statement, income-tax returns, W-2s and the last two income stubs are examples of documents that you might be asked to furnish when applying for a loan. Make sure you have these documents in place before you’re caught off guard.

#3: Find out how much you can afford beforehand

Make a budget and factor in unexpected expenses when you are applying for a mortgage loan. If you don’t know how much you can get, use Bankrate’s calculators to help you do that.

#4: Look around for a mortgage

Getting at least three estimates from three bankers and three mortgage brokers is a good idea before you are ready to sign on the dotted line. Shopping around doesn’t just involve looking for the best rates only.

#5: Keep your credit score intact even after the loan is closed

Being approved for a loan doesn’t mean it’s over. Ensure that you continue to pay your bills on time and avoid applying for credit cards or lines before the loan is declared closed.