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Getting a Mortgage Approval
By Mitch Hampson
Looking to get approved for your very first home mortgage?
Here are the tips that you need to have for sure fire approval
Getting your first home mortgage is scary, this is a big deal, and I mean we are talking about big money right? This is a big responsibility but that does not mean that you can't hack it. Millions of people get mortgages each year and you cannot let a little fear get in the way of you owning a home of your very own. Your family deserves to have a home that they can call your own and if you have everything that you need ready to go when you apply for your mortgage loan the chances of getting approved rise dramatically.
It is all in the details. You need to take stock of what you have and what you need. Just because you need to have several thousand dollars to buy that house it does not mean that the bank is just going to hand it over to you. Before they do that they will ask that you give them a down payment.
This down payment is like security. It is a good faith effort that you are putting out there to show that this loan is important to you and that you are willing to sacrifice what you have to in order to get it. They don't want to have to repossess your home in a year because you were not really serious about the deal; they want to know that you really mean business.
Your mortgage down payment will probably be somewhere around 20% of the total cost of the home you are planning on purchasing. There are all kinds of reasons for you to put as big a down payment as possible down on the home but the most important one is the fact that the more you put down the lower your interest rate is going to be.
Each year that you still owe money on your home you will be charged interest and this fee can really add up. You may even find that you have spend hundreds of thousands more for your home when all is said and done, than if you had purchased the home outright. But since most of us cannot afford to buy a home all in one fell swoop, we are forced to accept interest as a necessary evil to us having our own roof over our heads.
The down payment is not the only obstacle to getting approved for a home mortgage either. You also have to have all of your documentation ready for your lender. You will need to collect your latest tax returns as well as the ones for the last several years, records of your employment history as well as your debt history and your investment history. These are all very important when the lender is deciding whether or not to actually give you the money that you need for your mortgage.
Getting a mortgage is one of the most exciting and thrilling things that you will ever do so make it count and get the mortgage that you want. Don't get taken for a ride, make sure that you find out what the going interest rate is on a mortgage at the time that you want to buy and be sure to get that rate from your bank.
About the Author
Mortgages
This article is shareware. Give this article away for free on your site, or include it as part of any paid package as long as the entire article is left intact including a live link. Copyright © 2006 MITCHELL Hampson
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