In order to get a mortgage, you should complete a special mortgage application, filling some information about yourself. However, before doing it, we’d like to advice you to check, if you are prepared for getting a mortgage for buying any real estate. In this article we’d like to introduce you some simple steps to make sure, that you are OK with your future mortgage.
First of all, you should check your credit score. It’s a value, which shows, how good you are as a borrower. You can get your credit score after applying to the free online credit report. Pay attention to a small fee, which needs to be paid for this. In the result, you’ll get a number of your credit score. It must be equal or greater than 700. If it’s less, you can have problems with getting an approval or with a higher interest rate.
Second thing you should pay attention to is, obviously, your budget. You should demonstrate all of your incomes and expenses, in order to see the bigger picture of how much you can pay on a monthly basis. Most of the banks require the documents, showing your tax expenses for the last 3 years.
Finally, the third thing you should do, is checking, if you can afford the house you want to buy. For this some simple counting operations are needed. Determining the price of your real estate should be based on the size of your monthly payments – they should not be higher, than 25-30% of the money you earn (after taxes).