How to Qualify for a GMAC Mortgage

General Motors Acceptance Corporation (GMAC) is the financing services division of General Motors, one of the world's largest vehicle manufacturers. Financial services include vehicle, insurance and mortgage programs in about 40 countries. This means that individuals looking to buy a home are not necessarily limited to banks and credit unions if they need a mortgage loan. Provided they meet the criteria for acceptance, they can qualify for a GMAC mortgage.

Difficulty: Easy

Instructions

1. Ensure your credit standing is healthy. Request a credit report from any reporting agency. You are entitled to one credit report every 12 months from any one of the three credit agencies: Equifax (www.equifax.com); Hyperian (experian.com/consumer.com) and TransUnion (transunion.com).

2. Review your credit report. A good credit score is important. Scores generally range from 500 to 850; a good score is 750 and up and increases your chances of being granted a mortgage.

3. Check for errors in your credit report. File a request in writing for these errors to be rectified immediately.

4. Visit the GMAC Mortgage web site. This brings you to the page where you can fill out a credit pre-approval application. If you prefer to speak to someone, call the GMAC Mortgage 24/7 line at: 1-877-355-4622.

5. Provide all information requested on the credit pre-approval form: name, Social Security Number, email address, day and evening phone numbers (the best time to call you) and your home address. Give the name of your co-borrower, if applicable. Indicate how soon you wish to purchase your home. Complete the application by filling in your annual income, total assets, down payment amount and your total monthly debt payments. These influence GMAC's decision on whether or not to grant you a mortgage loan.

6. Convince the loan officer that you can afford to repay the loan by having sufficient assets to back you up, making a reasonable down payment and not over-extending your lines of credit.

7. Wait for someone from GMAC to call you. Applicants usually receive a reply from two to seven days. If you have not heard anything, follow-up by calling GMAC Customer Service at 1-800-200-4622.

Tips & Warnings

• Good credit is of primary importance. GMAC, however, says that bad credit should not preclude you from applying for a mortgage loan; they have certain loan programs that may be appropriate for individual situations. Still, it is better to have good credit rather than bad.
• Choose the house that you can afford. Keeping up with the Jones' is a surefire way to financial ruin.
• In the past, mortgage lenders required a minimum 20% down payment. This is no longer the case. If you can not make a reasonable down payment, you can purchase private mortgage insurance. This assures the lender that they have recourse should you default on a payment.
• You can choose the term of your mortgage - 10, 20 or 30 years. A longer term means your monthly payments are lower but your interest charges are higher.
• If there is anything you do not understand in the mortgage agreement, ask until you are satisfied that you understand everything.
• Set aside an amount for closing and other mortgage-related costs.
• Never put false information on the pre-credit approval form or on the mortgage application. This may disqualify you and you may have problems re-applying in the future.
• Do not default on your payments. This can lead to refusal of your mortgage loan, re-possession of your house or other assets, and court proceedings. If you cannot make a payment on time, inform GMAC immediately without waiting for the due date.