Guide To Things You Need To Know Before Getting a Mortgage_.jpg

Guide To Things You Need To Know Before Getting a Mortgage

If you’re getting ready to buy a house, there are some things that you should know before you jump in. This guide will provide you with a rough outline of some of what you’ll need to do in order to improve your chances of getting approved at a good rate. Contact CalSun Mortgage today if you’re looking for a mortgage provider in the Los Angeles area.

What Mortgage Lenders Are Looking For

There are many factors that a lender will take into account when they are making their decision about whether or not to provide you with a loan. The following list is a few of the most common items you may be asked about when you apply for a loan.

  • Income and job history. Lenders want to know that the people they are lending money to have steady employment and earn enough money to make their payments each month. Lenders will ask for proof of income as a part of the process.

  • Credit score. Your lender will get your permission to run your credit report in order to see what your credit score is. The higher the score, the more likely you are to get a better interest rate.

  • Debt-to-income ratio. Your debt to income ratio is the amount of money that you have left over after your monthly obligations are taken care of. This can include your rent/mortgage, car payments, student loan payments, credit card debt, and more.

  • Property type. Lenders want to know what kind of property you are looking for. The rates and requirements for a single-family home will be different from a multi-unit building or a commercial property.

Documents You Need To Provide

Your lender will ask you for a number of documents that prove your income as well as proof of ownership of other assets. This will show the lender if you will be able to afford the mortgage payments.

Why You Should Get Pre Approved

Pre approval is a vital part of trying to buy a home. Pre approval means that you have had your lender check everything they need to check and that they will guarantee a loan up to a certain amount. In today’s fast-paced market, pre approval can make all the difference between getting the home of your dreams and missing out.

What To Do Next

After you have gotten pre approved, then you should start looking for homes. Working with an experienced and knowledgeable real estate agent is a great way to learn more about the process of buying a home, what to look for, and where you should be looking based on your pre approved loan.

Contact CalSun Mortgage today if you are ready to start looking for a home to buy in the Los Angeles area.