Gavin Ekstrom, a senior area manager with Citywide Home Loans, has more than 20 years of experience in mortgage lending. Dedicated to providing strong customer service, Gavin Ekstrom encourages his team to provide thorough client education.
Before you apply for a mortgage, it is important to understand your financial situation. The first thing you need to know is your credit status, as mortgage lenders typically review this information when determining a borrower's interest rate. By improving your credit score, you may be able to save tens of thousands of dollars over the lifetime of your loan.
Experts recommend that you begin by checking your credit report for errors. According to a study by the Federal Trade Commission, 5 percent of consumers risk overpaying for loans due to erroneous information on their reports. Once you are aware of any errors, you can formally dispute them and seek to have the error removed.
A review of your credit report may also allow you to identify and pay off any overdue accounts. This, along with the reduction of credit card balances and the avoidance of new credit applications, may help you to lower your debt-to-income ratio. Creditors often use this ratio to determine your mortgage eligibility.
Simply put, your goal as a potential mortgage applicant is to show lenders that you can afford the loan and will be reliable in paying it off. If you work toward demonstrating this quality through your credit report, you give yourself the best chance of obtaining an affordable rate.
Before you apply for a mortgage, it is important to understand your financial situation. The first thing you need to know is your credit status, as mortgage lenders typically review this information when determining a borrower's interest rate. By improving your credit score, you may be able to save tens of thousands of dollars over the lifetime of your loan.
Experts recommend that you begin by checking your credit report for errors. According to a study by the Federal Trade Commission, 5 percent of consumers risk overpaying for loans due to erroneous information on their reports. Once you are aware of any errors, you can formally dispute them and seek to have the error removed.
A review of your credit report may also allow you to identify and pay off any overdue accounts. This, along with the reduction of credit card balances and the avoidance of new credit applications, may help you to lower your debt-to-income ratio. Creditors often use this ratio to determine your mortgage eligibility.
Simply put, your goal as a potential mortgage applicant is to show lenders that you can afford the loan and will be reliable in paying it off. If you work toward demonstrating this quality through your credit report, you give yourself the best chance of obtaining an affordable rate.
