4 Steps to Locking Down Your Dream Home Mortgage Loan in Newport Beach, CA
You've been looking around and decided that Newport Beach, CA is the place for you. Maybe you've even got a specific property in mind: all you need now is a home mortgage loan. Your loan process should be safe, simple, and fast. Here's what you need to know so you can get into your dream home as soon as possible:
Get Your Financials in Order
You'll be able to get through your home mortgage process faster if you have all your financial and personal information at your fingertips. Lenders have to look at your income, assets, regular expenses, and debts before they make a decision about your loan. If you have everything lined up to give them, things will go quickly.
Another advantage of getting all your financial information laid out is that you can get a big-picture view of your personal cash flow. Armed with that information, you may be able to identify places you can cut back on expenses. You'll also see just how much you can afford in mortgage payments.
Start Saving for Your Down Payment
It's never too early to save for your down payment. The bigger the down payment you can make on your home, the better loan terms you'll be able to secure. If you need help separating your savings for a down payment from other savings, start a special account just to save for home payments. Get the highest yield interest account you can find.
If you're nearly there but just aren't quite ready to make a down payment, consider a short term CD. Invest what you have for a year or so while ensuring a good interest rate. Then you'll be ready to make a solid down payment when the time comes.
Get Your Credit in Place
The better your credit score, the better your home mortgage loan terms will be. The best loan terms go to those with credit scores of 760 or more. If your credit score is currently subpar, there are some things you can do to bring it up:
Credit bureaus don't always get things right. An average of 5% of consumers have errors on their credit report and fixing these could improve your credit quickly. Keeping track of your credit details also allows you to stay on top of identify theft.
Make Payments Strategically
A lot of us are paying debts in several locations at once: a car loan, student loans, and two or three different credit cards. Make sure you line up your payments so you're not making any late ones. If you've got any bills that are outstanding but haven't yet been sent to collection, be sure to prioritize those. Once your accounts are current, they start making a positive difference to your credit report.
Keep Your Credit Utilization Down
Credit utilization is simply how much of your available credit you're actually using. If you can, keep your credit utilization below 30%. This signals to lenders that you're not in danger of borrowing more than you can pay back. To get there, follow these tips:
Pay down any balances you canDon't close out your credit cards once you get the balance to 0Take a loan on your 401(k) (which doesn't get reported to credit bureaus) to pay off high-interest loans and credit cards
Get Pre-Qualified and Pre-Approved
The best way to find out how large a home mortgage loan you're eligible for is to get pre-qualified and pre-approved. Once you know what lenders will loan you, you'll know exactly which properties are within your budget. You'll also go to the head of the line in the eyes of sellers!
Get Your Home Mortgage Loan
Are you ready to get your dream home in Newport Beach? Contact Justin Purpero today and find out how to get a simple, affordable, fast, and easy home mortgage loan.