| What steps need to be
taken to secure a loan? |
The first
step in securing a Saratoga Springs New York loan is to complete a loan application. To
do so, you'll need the following information:
- Pay stubs for the past 2-3 months
- W-2 forms for the past 2 years
- Information on long-term debts
- Recent bank statements
- Tax returns for the past 2 years
- Proof of any other income
- Address and description of the property you wish to buy
- 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. |
| How do I choose the
right lender for me? |
| Choose your
lender carefully. Look for financial stability and a reputation for
customer satisfaction. Be sure to choose a company that gives helpful
advice and that makes you feel comfortable. A lender that has the
authority to approve and process your loan locally is preferable, since it
will be easier for you to monitor the status of your application and ask
questions. Plus, it's beneficial when the lender knows home values and
conditions in the local area. Do research and ask family, friends, and
your real estate agent for recommendations. |
| How are pre-qualifying
and pre-approval different? |
| Pre-qualification
is an informal way to see how much you may be 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. It
involves assembling the financial records and going through a preliminary
approval process. Pre-approval gives you a definite idea of what you can
afford and shows sellers that you are serious about buying.
|
| 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. Once you receive the report, it's important to verify its
accuracy. Double-check the "high credit limit","total
loan," and "past due" columns. It's a good idea to get
copies from all three companies to assure there are no mistakes since any
of the three could be providing a report to your lender. Fees, ranging
from $5-$20, are usually charged to issue credit reports but some states
permit citizens to acquire a free one. |
| 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. You can also
request to have your own comments added to explain problems. For example,
if you made a payment late due to illness, explain that for the record.
Lenders are usually understanding about legitimate problems. |
| 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. The better the
score, the better your chances are of getting a loan. Ask your lender for
details. |
| How can I improve my
score? |
| There are no
easy ways to improve your credit score, but you can work to keep it
acceptable by maintaining a good credit history. This means paying your
bills on time and not overextending yourself by buying more than you can
afford. |
