While most of us take out the occasional cash advance, cash call, or personal loan, these truly do not compare to the mortgage. The sheer size of a mortgage is enough to make many customers nervous. As well, the application process for a mortgage can be intense – you need to improve your credit, seek out pre-approval, and really prove to a lender that you are ready for the financial responsibility.
You can improve your chances of getting a mortgage by getting ready early. As soon as you realize that you want a home, start improving your credit score. It is important to have a perfect credit score when you apply for a home loan because you want the best rates possible – a large rate on a big mortgage could mean you end up paying tens of thousands of dollars more than you have to over the term of your mortgage.
Once your credit is perfect – or as close to perfect as you can get it – start gathering your financial documents. “Your mortgage lender may need to see a few years worth of personal income tax statements as well as your income statements, to show that you make enough to pay off a mortgage. If you have any unpaid unsecured loans or cash advances, pay them off before you see a lender” – says Chris F. Davenport CEO of LocalCashHelp. The less debt you have, the happier a lender will be to lend you a mortgage. Also, before you go in to see if you can get pre-approved, make sure you read our guide to mortgages to find more great tips on getting approved on your home loan.
Investing in Real Estate
Many people dream of investing in arts, stocks, and other assets, but by far the most popular investment remains real estate. Real estate continues to be the king of investments simply because it is so accessible, easy to finance, and reliable. Many fortunes have been made with real estate and many people have created a second income for themselves with property. Here’s how:
1. Foreclosures are homes which are repossessed for non-payment of a mortgage. These homes can easily be purchased for less than their original price. They can then be resold or the equity in these homes can be used.
2. Flipping involves buying a home for less than it is worth, fixing it up quickly, and reselling it at a profit.
3. This is the most popular way to invest in real estate. An investor purchases a property, pays it down, and holds onto it. The property rises in value, allowing the buyer to resell or simply to use the equity in the home.
4. Some investors buy property and rent or lease it, creating a nice passive income.