Because of the housing market crash and a tough economy, it can be much more difficult to obtain a home mortgage loan today. But there are several things you can do to increase your chances of getting a good mortgage loan and a good interest rate. If you are thinking of building or purchasing a home and are shopping around for mortgages in Alcoa TN, use the following tips to make sure that you aren’t paying more than you absolutely should.
First, check your credit report and credit score. The higher your credit score, the better your interest rate will be. Lending institutions are also more likely to loan you the money you need for your home if they are positive that you will make your payments on time and meet your obligations. If your credit history shows a record of late payments and loan defaults, the bank is less likely to take a chance on you. Pay any unresolved debts and close out any unused accounts before applying for mortgages in Alcoa TN.
Second, be as honest as possible in your loan application. Any negative information that you try to hide will likely come to light once the application is submitted. If you are concerned about a piece of information, discuss it with your loan officer and determine the best way to handle it. Being transparent in your loan application also ensures that you aren’t borrowing more than you can afford to pay back. Fill out the loan application carefully and make sure there are no mistakes before submitting your paperwork.
Third, try to make a big down payment. The more money you are able to put down on your mortgage, the more likely you are to be approved by the lending institution for your mortgage. When you offer a large down payment, banks and credit unions feel more confident that you are serious about the loan and more likely to repay it. The more you invest of your own money, the better your mortgage loan will be.
Finally, before you apply for your mortgage loan, figure out what you can afford on a monthly basis to ensure that you are living within your budget and not borrowing outside what you can afford to repay. Figure in your principal on your loan, the interest you will pay monthly, your insurance policy, and any other taxes and fees that will be related to your mortgage loan. Check the fine print of your mortgage loan to ensure that you don’t have things like a prepayment penalty written into the loan.
The more prepared you are to apply for mortgages in Alcoa TN, the more likely you are to be approved the quicker the process will be completed.
Citizens Bank of Blount County offers banking services such as savings, mortgages, loans and more in Maryville & Alcoa, Tennessee (TN) for your both personal and professional banking needs.
