theedgingtons.com

The new year is bringing hope to our financial future and a great way to re-invest may require you to take out a mortgage.  With interest rates dropping and news reports of the financial crisis and ample foreclosures, the Calabasas real estate industry is now a prime target for investment. The upcoming changes to the borrowing market mean that your finances need to be in order before you begin looking for a bargain on your Calabasas mortgage. The following tips will help you secure a mortgage, stress and trouble free:1.    Check Your Credit Score Before You Apply For A MortgageCredit scores required to secure a mortgage, even in pricey areas like Calabasas, have risen as mortgage lenders reel from the 2008 financial situation.  The first step in securing a mortgage is to order at least one copy of your credit report and see where your score lies. When looking to secure a mortgage, you will want a credit score of 740 or higher. Scrutinize it, identify any errors and report these to the credit bureau – finding these problems could be the key to buying into the Calabasas real estate market or not.2. Improve your Credit ScoreYou can improve your credit score by paying off outstanding debts and decreasing your debt to income ratio. Begin by paying bills on time – this is more important to your credit score than you would think. One tardy payment can reduce your score by 150 points. An acceptable score of 750 will suddenly become 600, making it very difficult to get a Calabasas mortgage. People who pay their bills late appear to be in financial hardship and, in the eyes of a mortgage broker, not someone that lenders want to give money to. Paying your rent or current mortgage on time for 12 months looks great to a mortgage lender and makes them feel safe that you will make regular payments. Additionally, if you break a lease it will show up in your credit report – this is not a good reflection of your commitment to contracts.3. Get Your Paperwork in OrderThe paperwork to apply for a mortgage is now even higher. The days of no or low document mortgage loans are over – in today’s market, all mortgage lenders will require proof of every declaration. Presenting your paperwork in a clear and orderly fashion will make you look more professional and make it easier for a lender, whether in Calabasas or not, to assess your eligibility for a mortgage. Income proof is the most important requirement when filing for a loan. Collect an income statement from your employer(s), copies of bank statements from the last six months and copies of all recent tax returns. Proof that you’ve been paying your bills and rent and current mortages on time will also work in your favor when applying for a Calabasas mortgage.4. Save Your DollarsTo a mortgage lender, having a decent sum in the bank means that you are likely to make timely repayments and are financially responsible. When applying to a \ lender, aim to have saved at least six months’ of mortgage repayments before applying. There are online calculators to determine the repayments on your desired amount, or contact your local lender. The amount you save for a down payment could make or break your application for a Calabasas mortgage.