How To Get A Great Rate
Improve your credit score. Paying bills on time is reflected in your credit score and your credit score is a piece of what determines the risk of your loan to the lender. The higher the number, the better the rate.
Did you know that a larger down payment can help you get a better rate? The larger the down payment, the lower the risk of the loan.
Ask your loan officer what you could do to get the best rate available.
Purchase Check List
- Last 30 days of paystubs.
- Last 2 years of W-2s.
- Award letters (social security, pension, disability, etc.).
- Last 2 months of bank statements (all pages) for checking and savings.
- Last quarterly statements for any retirement and/or investment accounts.
- CD from sale of your current home (if applicable).
IF YOU’RE SELF-EMPLOYED, OWN OTHER PROPERTY, OR MAKE THE BULK OF YOUR INCOME IN COMMISSION:
- Last 2 years personal tax returns and all schedules.
- Business returns could be requested additionally.
- CPA to provide a Current Year Profit & Loss statement for self-employed borrowers.
- Purchase contract (fully executed).
- A copy of your driver’s license.
- The name and number of your insurance agent.
- Bankruptcy discharge paperwork (if applicable).
- Copy of divorce decree or court order to support alimony and/or child support (Whether receiving or paying).
Credit Score Basics
How is my credit score calculated?
- Continue to make rent or mortgage payments where you are currently living.
- Keep your payments current on all debts.
- Maintain status quo with spending habits.
- Consider enrolling in credit monitoring services to monitor your credit as soon as you decide you want to buy a home.
- Stay employed with the company on your application or if you must change, keep it in the same line of business and always speak with your lender prior to leaving.
- Don’t make any new major purchases.
- Don’t apply for new credit.
- Don’t open new credit card accounts.
- Don’t transfer credit card balances.
- Don’t take out any other loans.
- Don’t open a new cell phone account.
- Don’t leave your job.