Getting pre-approved by a mortgage broker can be a major factor in getting your offer expected in todays’ Los Angeles real estate market. Preparing your first visit to your mortgage broker can make this approval process more efficient and less stressful. After all, there aren’t many worst feelings then finding the perfect piece of Los Angeles real estate only to be told that nobody will finance the purchase. Even if your credit is good, and you know there will be no problems obtaining a loan, it is still an excellent idea to get pre-approved beforehand.
Failing to do so can make the end process feel as if it has come to a screeching halt. Plus, the pre-approval shows the seller that you are a serious buyer. It also gives the buyer some wiggle room to negotiate the price. So, don’t just dive into buying property head first. Instead, get pre-approved and be sure you land the Los Angeles real estate of your dreams.
Accomplish These Steps
1. Get All Of Your Documents In Order
It is good to be organized regardless of what you are doing. But, when it comes to mortgage pre-approval, the action ensures that the buyer has all of his or her ducks in a row. Having all of the paperwork together can make the process go a little smoother. Not to mention, it takes the stress out of searching high and low for documents at the last minute. Then, once you have found the right property, all you have to do is hand the papers over to the loan officer.
2. Make Sure Your Credit Is In Good Standing
Mortgage lenders do a check on your credit history during the pre-approval process. It is typically referred to as a tri-merge because the three major credit bureaus are involved. If you have outstanding loans and repossessions on file, you may want to consider having your credit repaired before visiting with the loan officer. This action will give you a better chance of being approved.
3. Applicants Need Various Types Of Proof
Lenders will want your employment verification, proof of income and assets, and more. They will need to see your driver’s license as well as your social security card. So, be prepared, and with any luck, the pre-approval process will go swimmingly and without any bumps in the road.
One of the first steps to take when you consider purchasing a home or investment property is to take a very close look at your credit score. Keeping your credit rating in good standing to ensure that you can purchase cars, homes, and other items that require financing. Sometimes that means you will have to do some credit repair.
Of course, it is not uncommon for persons to find themselves in a financial bind every once in a while. An unexpected health expense can leave them strapped for cash and unable to pay their bills. Getting fired or laid off can cause the same dilemma. Sometimes, things even get so bad that vehicles, homes, and other possessions become repossessed. These types of things affect one’s credit. If the number dips too low, the individual usually has a hard time getting a bank to finance them. When they do happen to get approved for a loan with bad credit, the down payment is typically high.
There are plenty of credit card companies out there that will give just about anybody a line of credit. However, if your stats are less than stellar, you should expect an extremely high-interest rate. Luckily, there is a solution for this dilemma though. So, curious individuals should read further to learn more about it from our Los Angeles real estate agency.
How Credit Repair Works
Our firm is ready, willing, and able to help you find that perfect piece of Los Angeles real estate. But, if you know that you have overdue past loan payments, repossessions, or other credit issues, you might want to consider having your credit repaired before trying to obtain a mortgage. The first step is to find a reputable debt consolidation company that specializes in credit repair. Once that is out of the way, the process can begin. Basically, a large loan is taken out to pay for smaller loans. The payment is usually affordable, and one must make every effort to pay it on time by the due date. As the older bills start to become removed from your record, and you are paying for the new loan, your credit score will slowly begin to improve.
Also, it is a good idea not to take actions that will affect your credit score during this time. For instance, don’t take out a payday loan and forget to pay for it. Then, in a matter of no time, you will have repaired credit and be able to buy that Los Angeles real estate that you long for.
What If My Credit Is Not Great But Ok?
There are quite a few things you can do to improve your credit:
- Correct any errors on the credit report.
- Become an authorized user on a family member or partner’s card, providing they have great credit.
- Raise your available credit. A super easy step that can help you boost your credit quickly and without any ‘hits’ on your score.
- Negotiate a better rate or payment with your debtors.
- Always make minimum payments on time.
- Reduce debt-to-income ratio.
- Have a good mix of debt.
Here’s a handy page full off information to help you get your credit score to a healthy range.