1. Study your credit
Good
credit is the key to snagging a mortgage in this tight lending
environment. Get copies of your credit scores and credit history from
the three main credit reporting bureaus. Study the reports carefully to
make sure there are no errors or issues to resolve before applying.
Most
lenders require a minimum credit score of 680 to comply with Fannie Mae
and Freddie Mac's guidelines. Federal Housing Administration loans,
which are guaranteed by the FHA, allow for lower scores, but most
lenders want to stay away from scores lower than 620.
2. Prepare before you start
There are some basic documents every lender requests when you apply for a mortgage. Don't wait for them to ask.
Have
these documents ready when you walk into the lender's office: your last
two pay stubs, W-2s, income tax returns and bank statements.
Save
these documents and any additional ones the lender requests in an
electronic format, so you can easily resend them if anything gets lost
in the process.
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