WHAT STEPS NEED TO BE TAKEN TO SECURE A LOAN?
The first step in securing a loan is to complete a loan application. To do so, you'll need the following information.
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Pay stubs for the past 2-3 months |
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W-2 forms for the past 2 years |
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Information on long-term debts |
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Recent bank statements |
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tax returns for the past 2 years |
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Proof of any other income |
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Address and description of the property you wish to buy |
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Sales contract |
During the application process, the lender will order a report on your credit history and a professional appraisal of the property you want to purchase. The application process typically takes between 1-6 weeks.
1.HOW DO I CHOOSE THE RIGHT LENDER FOR ME?
Choose your lender carefully.
2. HOW ARE PRE-QUALIFYING AND PRE-APPROVAL DIFFERENT?
Pre-qualification is an informal way to see how much you maybe able to borrow. You can be 'pre-qualified' over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.
Pre-approval is a lender's actual commitment to lend to you.
3. HOW CAN I FIND OUT INFORMATION ABOUT MY CREDIT HISTORY?
There are three major credit reporting companies: Equifax, Experian, and Trans Union. Obtaining your credit report is as easy as calling and requesting one.
CREDIT REPORTING COMPANIES
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Company Name |
Phone Number |
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Experian |
1-888-524-3666 |
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Equifax |
1-800-685-1111 |
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Trans Union |
1-800-916-8800 |
4. WHAT IF I FIND A MISTAKE IN MY CREDIT HISTORY?
Simple mistakes are easily corrected by writing to the reporting company, pointing out the error, and providing proof of the mistake.
5. WHAT IS A CREDIT BUREAU SCORE AND HOW DO LENDERS USE THEM?
A credit bureau score is a number, based upon your credit history, that represents the possibility that you will be unable to repay a loan. Lenders use it to determine your ability to qualify for a mortgage loan.
6. HOW CAN I IMPROVE MY SCORE?
Paying your bills on time and not overextending yourself by buying more than you can afford.
