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The Right Time To Apply For A Mortgage

The Right Time To Apply For A Mortgage

Every mortgage lender has a regular monthly business cycle, so when is it the right time to apply for a mortgage?



The loan application process should be started within the first few business days of the month. At this time of the month, lenders are hungry for new business. Loan officers and processors are willing to return your calls and will carefully review loan applications and terms.

The worst time to apply for a mortgage is in the last week of the month. This is because lenders will be busy closing loans in order to meet targets and compensation goals.

Applying at the beginning of the month will ensure you get that extra attention.

You can improve your experience with a lender with these helpful tips.

Get Organized

A lender will ask you for a lot of financial documents, so you should be ready for this. Get organized and have everything that you need at hand.

A Complete Application

It is a good idea to be prepared and ensure that you submit a complete set of documents with your application. This will speed up the process and your lender will be able to send your loan for underwriting straight away.

Detailed Information and Explanation

You should think about how your application will look to a risk underwriter. If there are any quirks in your financial history, you should explain these. These things may include gaps in employment or any credit pitfalls.

Expect Delays

Your rate lock should include a few buffer days. This is to ensure that you do not lose your rate due to delays that are out of your control.


Tips for Finding the Best Mortgage Lender

Tips for Finding the Best Mortgage Lender

One of the biggest financial purchases that you will make is buying a home and will use a mortgage to do so that can take years to pay off. You are able to save money by shopping around and comparing mortgage quotes.



You will obviously want the best deal so take a look at these tips to finding the best mortgage lender.

Your Credit Score

Your credit score will have the largest impact on the deal you will get. Mortgage lenders will prefer those that have a higher credit score as these borrowers show that they are able to make payments on time and are seen as trustworthy.

If you have a lower credit score then you will get a higher interest rate. If your credit score is poor then you may not even qualify for a mortgage.

You should first make sure that your credit reports are up to date and accurate, because errors are not uncommon and these can hurt your score.

You will then need to look at the debt you already owe and reduce this. Your debt accounts for about 30% of your credit score.

With a higher credit score you are in a better position to negotiate rates.

Compare Several Lenders

The best mortgages available can come from various mortgage lenders like a commercial bank, a mortgage company or a credit union.

You can do a simple search online to find the best mortgage rates. Ponce you have a number of quotes you will need to compare these in terms of costs and determine, which one makes the most financial sense.

Once you have your best mortgage quote, you can go to your mortgage lender and use your quote to get a better deal.

Using Referrals

One way to find the best mortgage lenders is to ask your family and friends if they are able to recommend anyone.

Ask them about there experience and if the mortgage lender was easy to deal with, responsible and trustworthy.

You can also ask your real estate agent and of they know any good lenders.

Research and Interview Mortgage Lenders

You should ask potential mortgage lenders about their experience and the qualifications they hold. You can even ask them for references.

It is also a good idea to do a background search on them before you sign anything. You can search for them on the Internet and try and find reviews, as this will give you a good idea of what other borrowers experienced.

Reading the Fine Print

The loan amount and the interest are not the only payments you will need to make, so you need to ask your mortgage lender about closing costs, transaction fees, loan origination fees and other such fees. If you are unsure about anything then ask the lender until you understand.

Read all of the fine print of the contracts so you know the terms, the fees and what is and what is not included and other such things.


Cash Vs. Mortgage When you Buy a Home

You will always hear how bad it is to carry debt around, so it is logical to think that buying a home with cash or putting down as much cash as you can for your home so that you can avoid the massive debt that is associated with a mortgage.home

However, there is a lot you need to consider when you buy a home with cash or by getting the best home loan according to 6collegecrescent.sohoproperty.com.au.

Cash Cuts Costs

When you use for a home it will eliminate the need to pay interest on a loan and other closing costs. You will then not have to pay mortgage origination fees, appraisal fees or other fees that are charged.

Also paying cash can make your offer to purchase more attractive to sellers.

Paying cash for a home also means that there is flexibility in closing faster.

Also the cash buyer might be able to get the property for a lower price.

A cash buyer’s home is also not leveraged, which then means that a homeowner is able to sell more easily.

Mortgages also Make Sense

There are also benefits to getting finance, as your personal cash is not tied up in real estate.

Cash buyers need to be sure that they leave themselves plenty of liquidity. If the home needs repairs or renovations it might be hard to get a home equity mortgage later on as you cant be sure what your credit score will look like in the future, how much the home will worth or other factors that could influence mortgage approval.

Selling a home that was paid for with cash can also cause a problem if the owners stretched a lot financially to buy it. A cash buyer will need to ensure that they have enough cash reserves to put a deposit down on a new home.

There are also tax implications when you pay cash as mortgage interest payments are generally taxed deductible.

When you decide how to pay for real estate you need to choose the option that will give you more for your money. You also need to consider which will give you the greater return on your investment.