Getting a loan can be easier than you might think if you go into it prepared. For the first time buyer, itís important to prepare for your application properly, so that youíre more likely to get approved and so that the whole process will go smoothly. In this article, weíll talk about how to best prepare for your loan application.

Step 1. Improve Your Credit Before You Apply (Optional but HIGHLY Recommended)

First of all, know your credit scores. You can get all three credit bureau's reports online at no to little cost. Make sure you go through each of them and note any discrepancies you may find and then contact each lender and each bureau to get them cleared up! Generally, you will need a minimum 620 score to be able to get an FHA loan and at least a 660 for conventional mortgage. Mortgage quidelines can change, so make sure to check with a lender for the most up-to-date requirements. If you're applying 1-2 months before your purchase, it could be difficult to improve your credit. However, if you know youíll be buying your house in 6 months, itís a great idea to start improving your credit now so that you can get a lower interest rate when you do apply for your loan. Next, pay down as much of your consumer debt as you can (but don't close those accounts just yet as it may adversely affect your credit score and save!

Step 2. Find a Good Lender in [Profile.market2]

Working with a good lender and a good loan officer is vitally important. You want your loan officer to be the person who will ensure your loan process goes through smoothly. Naturally, you want someone competent, experienced and professional to work with. Ask around for referrals from friens or family members who've recently bought a house or refinanced their existing mortgage.

Step 3. Understand Your Mortgage Options

Although a good lender will explain your loan options for you, itís still important to go in to the loan process prepared.

Although the number of mortgage products has gone down over the last few years, you still have your old time favourites that you may qualify for: conventional, FHA and VA loans. Visit your lenderís website before meeting with your lender to see what kind of loans your lender offers. Do your research on your loan options so you can have an educated discussion with your loan officer.

Step 4. Go in Prepared

Once you have your credit in good order, youíve found a good lender and you understand your mortgage options, itís important to understand what else your lender is looking for.

What is your debt to income ratio? What is the minimum downpayment amount that you will be expected to bring along with an estimated closing costs and pre-paid items?

As you can tell, when it comes to mortgages, it pays to do your homework.

There is a lot of free information available to you about buying, selling or investing in [Profile.market2] real estate. For complete information about the [Profile.market2] real estate market including current homes for sale, mortgage tips and more please visit the most complete website online dedicated to everything [Profile.market2] real estate at [Profile.website]. So please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at (901) 277-5324 or email me at Olena@OlenaKeene.com .