Steps to Securing the Right Mortgage by David Nalin

Everyone wants to have a piece of the American dream and owning a home is the biggest step towards that dream. While the mortgage game can be daunting it is one of the only ways that most individuals can jump into the home buying process. There are very few individuals who are able to purchase a home without a mortgage, and this is why it is important to begin planning for a home many years in advance. The key to getting the best possible rate on a home mortgage is doing your research and being prepared for any surprises along the way. If you want to purchase a home, and ensure that you will be able to secure a mortgage, then the first step is to save your money. A lending institution is more willing to give a person a mortgage that has a ten to twenty percent down payment and a six month to a year emergency fund in savings. This tells your lending institution that you are financially stable enough to pay back your mortgage in a timely manner. While this may seem like an unnecessary step it is a vital one to ensure that you will not be turned away when you start to secure your mortgage. While you are saving for your new home, it is also a time to start to look very closely at your credit score. It is important to remember that this score will be the key to getting the lowest interest rate possible on your mortgage. It is important to check your credit at least once per year and to fix any mistakes that may arise as quickly as possible. When you want to purchase a home you may want to check your credit approximately every three to four months so you can fix any inconsistencies as quickly as possible. When it comes to getting a great interest rate the higher your credit score the lower your rate, so it is important to aim for a score in the mid-700s or higher. This will insure that you will not be turned down for your mortgage and you will be able to secure their advertised interest rates. If you have less than perfect credit then it is important that you take the time that you are saving for your home to repair your credit as much as possible before you approach your lending institution. Once you have your savings and credit at the point they need to be to insure that you are able to obtain a mortgage then it is time to research the different options that are available. The first step to this is to determine the most comfortable payment that you can afford. In your determination you also need to factor in insurance and real estate taxes to ensure that you will be able to comfortably afford your new home. Once you have all of this information then it is time to approach your lending institution. It is important to gain pre-approval for any mortgage before you start the best part of the process and that is the actual hunt for your new home.