The mortgage application and approval process can be daunting for even those with the most pristine of credit scores, yet with less than perfect credit, applying for a mortgage can be downright shrinking. In part one of this article we'll discuss some tips that may help residents of Florida, and even those around the country, apply and get approved for a mortgage – even with bad credit.
The most important piece of information when applying for a mortgage is your credit score. Lenders use this score and report to determine what your borrowing history has been. If you have bad credit, there may be less-than-desirable items on your report that you'll want to take a look at. Do this before you ever start the loan application process. Additionally, there may be inaccuracies on your report, which can be corrected by contacting the credit agencies. Fixing inaccuracies will improve your score and your chances of getting that perfect loan!
Next, you need to get your finances in perfect order. This means organizing your checkbook, collecting your pay stubs, finding recent years' tax returns, and everything else. You'll also want to add up your monthly expenses, the amount of outstanding debt you currently have (ie Student Loans and Car Loans). And finally, this step involves determining exactly how much you think you'll be able to afford each month – a critical factor in getting the right loan.
Once your credit score is accurate, you've determined what you can afford, and your finances are in order, it's time to do your research. There are some lenders who specialize in making bad credit loans, if you have bad credit you'll want to seek these types of lenders out. There are plenty of these types of lenders through the state of Florida. Searching online for: bad credit lenders in Florida, or similar terms will bring thousands of results that can help find the lender that is the right match for you.
In this first half of our series on Getting approved for a Florida Mortgage we've discussed three tips that can help any hopeful homeowner, especially those in Florida, get an affordable mortgage, even with bad credit. They were: check your credit score for errors, organize your finances and gather proof of income, and research the right lenders for your credit. In the second part, we'll be discussing even more advice on finding the right lender and completing the application in the right way.