Before going in to talk with a lender, consumers can request a credit report from one of the three main credit reporting bureaus to see what lenders will look for.
Chicago, IL (PRWEB) February 11, 2015
The Federal Savings Bank, a Midwest-based lender, knows that first-time home buyers are often intimidated by the mortgage application process. However, with a little preparation, they can feel confident when they go in to meet with lenders for the first time.
The Federal Savings Bank advises first-time home buyers three way to prepare for their first conversation with a loan officer:
1. Gather all necessary documents
While mortgage lenders will probably list off the financial documents borrowers will need to be approved for a mortgage, buyers could be one step ahead by collecting the documents they need. These include proof of income and documents listing assets and outstanding debts. The Consumer Financial Protection Bureau said on February 7th that mortgage lenders may request information regarding checking account balances, federal income tax returns and debt.
2. Check their credit scores
When applying for a mortgage, lenders will evaluate first-time home buyers' credit standings to determine whether to approve or reject these potential borrowers as well as come up with an interest rate for the loan. Before going in to talk with a lender, consumers can request a credit report from one of the three main credit reporting bureaus to see what lenders will look for. They will view credit scores and other factors that will influence a borrower's credit standing like his or her debt balances.
3. Have questions in advance
First-time home buyers often have a ton of questions about applying for home loans and even owning a home. Mortgage lenders are a valuable resource to answer these questions and help borrowers understand how to improve their chances for mortgage approval. Write down a list of questions that deal with applying for a mortgage, making payments and more. Having questions beforehand will keep borrowers informed throughout the whole home buying process.
First-time home buyers who want to learn more about mortgages should contact The Federal Savings Bank, a veteran owned bank, with their questions.