An Online Mortgage Application: Save Time, Reduce Surprises
An Online Mortgage Application: Save Time, Reduce Surprises
While there may be subtle variations between online mortgage brokers, there are still three things you should do before ever submitting an online mortgage application.
These tips can help you avoid some of the “red flags” that may delay your application — or even cause it to be denied.
1. Review your credit report. If you haven’t reviewed your credit report within the past year, you are entitled to request a free report from the three largest credit-reporting agencies: Equifax, TransUnion, and Experian.. (You can find more information on this federal program at http://www.ftc.gov/freereports.)
Once you receive your credit reports, go over them with a fine-toothed comb. If you spot any discrepancies, contact the credit reporting agency(ies) and submit a correction request. Be sure to file the request as well as the resolution of the request.
2. Determine your mortgage budget. Before you fill out an online mortgage application, you should know what you want to spend. Do not depend on the online mortgage company or your realtor when it comes to setting this figure. Although they can provide a rough calculation based on your income and expenses, only you know where your financial priorities lie. What you want to spend may be different from what you can afford.
For example, some people want have their “dream house” — and a larger mortgage — but others might prefer a less expensive home in exchange for more disposable income. Use an online mortgage calculator to figure out how big a mortgage you’re willing or able to tackle, based on your own needs.
3. Decide on one or two brokers, and be sure to only provide general information first. Many brokers will have a few inquiries as part of their screening process before the online mortgage application is given to you. For the sake of time, pick only a few online mortgage brokers that you would consider doing business with. Then, find out whether the lender(s) you’ve chosen are willing to work with you.
This will help you avoid filling out a full online mortgage application for a company that can’t help you. Also, you will limit the total number of credit reports by prospective brokers. (If you have too many credit inquires, it can affect your credit score. Too many credit checks is often taken as a sign that you can’t get the credit you desire.)
4. Complete the online mortgage application with care. If at all possible, avoid using a public computer on which your information may be stored and retrieved later. And if you’re using a laptop in a wi-fi hotspot, make sure your anti-spyware software is up-to-date. Shield your screen from prying eyes, perhaps by keeping your back to a wall. And check your browser window every time you switch screens to make sure your transmission is being encrypted. (Most browsers display a small lock to indicate encryption.)
By following these simple steps before you submit an online mortgage application, you’ll potentially save yourself some headaches and delays.
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Category: Mortgage application
