Mortgage Lenders

Be Prepared Before You Contact Mortgage Lenders

When you're looking for mortgage lenders, you need to be aware of the potential for scams and gimmicks, but you should also be prepared to negotiate the best deal you possibly can. There are some steps you can take to get ready for the mortgage application process.

Before you approach mortgage lenders for a Home Mortgage Loan, take time to look over your credit report. There are several ways to accomplish this. A federal mandate has made one copy of an individual's credit report free every year. You can take advantage of this by visiting www.annualcreditreport.com or by going to the offices of the three major credit reporting companies - Experian, Equifax and TransUnion.

After you have your credit report but before you begin contacting mortgage lenders, be sure that all the information on your credit report is correct. If there are any errors, file a credit report dispute immediately and take copies of that correspondence with you when you visit mortgage lenders. If you have explanation for any negative marks on your credit report, be ready with that information before the mortgage lenders question you about them.

The free credit report will not include your credit score (it's possible to be ready to talk to the mortgage lenders without that piece of information) but most mortgage lenders will require it. If you know your Fico credit score, you'll be in a better position to negotiate for the terms of your loan.

Mortgage lenders want to know about your credit history, but you can also have some information about your personal life, employment and the property you are hoping to buy. Be prepared for questions about the value of the property and point out any improvements you'd expect to make. If you have a stable work history or other points that might help prove your reliability as a borrower, be ready to provide that information to the mortgage lenders.

If you're looking for a loan for investment property, find mortgage lenders who specialize in that kind of loan. Likewise, if it's very expensive or very modest property, look for mortgage lenders who have a history of making similar loans. If you find mortgage lenders who are accustomed to making half million dollar loans and ask for $30,000, you may find those lenders less than enthusiastic about your request.