1. Review Your Credit Report
The first big hurdle in the mortgage approval process is your credit score, which is a big determining factor in your mortgage. A low credit score could affect your interest rate, costs or even cause your application to get denied. Before you start the Lake of the Ozarks home loan process, be sure to review your credit report. Make sure you are aware of what your credit score is. Talk to your mortgage professional about correcting any mistakes that may have been made on your credit report and if there are any ways you can improve your score before you take the next step in the home buying process.
2. Have Your Documents in Order
Your credit score is just one of the factors that a Lake of the Ozarks mortgage lender will take into account. Your lender is also going to need documentation on your income, assets, and monthly debt payments. Your debt-to-income ratio also plays an important role in the mortgage approval process. You can improve your chances by paying off some debts prior to applying for a mortgage loan. Talk this over with your mortgage lender at the Lake of the Ozarks first. However, if that is unrealistic, just ensure you do not take on any new debts while going through the mortgage process.
3. Get Pre-Approved
This can speed up your mortgage process exponentially. When you have a pre-approval letter in your hand while house hunting, you are essentially saying “this is how much my lender is willing to lend me right now.” This means that your lender has reviewed your information and has decided that you would be approved based on some initial basic information about your financial status.
4. Finalize Negotiations Quickly
This will be done with your real estate agent, but it can really slow down the buying process if both parties aren’t communicating quickly. There will be a variety of negotiations that happen between the buyer and seller, and as you get these notifications from your agent, it’s important to respond quickly and not let these things sit around for too long. Properties are selling quickly these days, and it’s important to keep this process moving - there are plenty of other buyers ready to swoop in.
5. Have the Home Appraised
The home appraisal plays a critical role in the mortgage approval process. A mortgage lender is not likely to lend more money than what the property is worth. If the appraisal determines that the property is not worth the asking price, you will either have to renegotiate with the seller, bring in additional funds at closing or find a different property.
Don’t Forget to Stay In Touch
When you are in the process of purchasing a home, one of the most important things you can do is stay in touch with your mortgage lender at Lake of the Ozarks. We want to help you close on this home as quickly as possible, but if there are delays in communication, this can slow things down.
If you are ready to buy a home at Lake of the Ozarks, we are ready to assist! This has been an amazing time to buy and refinance homes - and if you are looking for a good rate, it may be worth it to do it now. You can visit our website to submit an application or learn more about our company, we look forward to working with you, and helping you close as fast as possible!
Senior Loan Officer
NMLS #: 493712
4655 B Osage Beach Parkway
Osage Beach, MO 65065
**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.