Things You'll Need:
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Step 1
Know your credit score. When completing an application to become prequalified for a home loan, mortgage lenders and brokers ask applicants to estimate their credit rating. To ensue accuracy, order a copy of your FICO score and credit report beforehand.
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Step 2
Clean up your credit history. Lenders don't check credit reports before prequalifying an applicant. However, to improve your odds of getting the home loan, you must maintain a good credit history. Eliminate credit card debts, and pay your bills on time. Bankruptcies must be at least 2 years old, and foreclosures at least 3 years old.
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Step 3
Maintain steady employment. Job hopping doesn't look good on a home loan application. To get prequalified for a mortgage, you should have the same employer for at least 2 years, or remain in the same field for at least 2 years.
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Step 4
Use a mortgage broker to find a lender. There are different types of lenders, and they offer different loan programs. To get the best rate on the home loan, comparison shopping is necessary. Using a mortgage broker, you can obtain quotes from various lenders. Complete one loan application, and let lenders compete for your business. Review the offers and choose the lowest quote.
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Step 5
Obtain a prequalification letter. Once you've been prequalified for a home loan, the lender will give you a prequalification letter. This letter proves that you're a serious home buyer, and you can present it to home sellers and real estate agents.
Comments
aladyceo said
on 8/24/2009 Very informative article. Thank you
jull14 said
on 7/19/2009 Excellent article many of us should write article as inspiring as yours. I always love to read article that can help me live better and this is one of this article, thanks so much for sharing. This article is very clear and provided easy steps to follow. Thanks