When you approach a lender and ask for an Oregon mortgage and home loan, you may feel like you're up against a panel of judges. Simply learn how to make your application sparkle so that the lenders you approach can't possibly say no. Follow these helpful hints:
- Understand how mortgages work by doing your homework. Make sure you have a little knowledge about the lending process before you apply for your Oregon mortgage and home loan. Also, don't be afraid to ask your potential lender any questions you may have. If you walk into the lender's office not knowing the difference between an adjustable interest rate and a fixed interest rate, you'll have problems seeming legitimately interested in obtaining a home loan.
- Research your Oregon neighborhood. This really shows lenders that you mean business. When you're choosing a home, you should understand the cost of living and other economic factors about the community into which you are moving. For example, in Oregon's bigger cities, like Portland, Salem and Eugene, you can expect to find a better job, but you can also expect to find higher monthly bills. Along the coast, you'll enjoy a good economy as well, but the price of homes may be out of your range. Research where you're moving in order to better understand what your Oregon mortgage and home loan will be used for.
- Secure a great job near your potential new home. This isn't always 100% possible, but if you do so, you'll get major brownie points from any lender considering your application. In any case, it is important to have income that can support the amount for which you're asking. Most lenders figure that you'll need about 33% of your monthly income to go toward your mortgage, so plan accordingly.
- Whip your finances into shape. If you have any outstanding debts, pay them. If you have any errors on your credit history report, fix them. If you have any credit cards or bank accounts open that are collecting dust for lack of use, close them. By showing your lender that you have your personal finances under control, you can expedite the approval process for an Oregon mortgage and home loan.
- Shop around…And let your lenders know that you are doing so. By hinting that you might work with a different lender to secure an Oregon mortgage and home loan, lenders are more willing to drop interest rates, approve your application, and lower closing costs.
- Prepare for the down payment. Most lenders like borrowers to have at least 20% of the total cost of a house available for a down payment. Plan for that and then some. Remember that you'll need a good chunk of money—anywhere from $1,000-4,000 for closing costs. If you show your lender that you can pay these fees up front rather than adding them to your loan, he or she will be impressed with your saving skills.
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