Consumers face financial challenges when they make the decision to buy a home. With new laws that apply to lending practices, consumers should identify concepts that apply to their unique situation. A mortgage broker could help them prepare for this major investment more proactively.

Evaluate Their Credit Reports

Lenders evaluate information from all three credit reports. The information determines if the consumer face difficulties in paying their debts on time and if they settle these debts properly. For this reason, consumers should start by evaluating their credit reports.

As they review these reports, they identify any outdated information. The website for each credit bureau allows the consumer to submit reports to challenge the validity of the debt. If the account is closed and has appeared on the credit history for longer than seven years, the consumer can request a removal.

Seek Settlements Whenever Possible

When reviewing their debts, they should identify opportunities for settlement offers. Accounts that are in collections or were purchased by a collection agency could present the best options for a reduced settlement. The consumer should contact these creditors and set up a payment plan based on the settlement offer. As each of these negative listings are removed, the consumer’s credit score increases. This could help them qualify for more loan programs.


Determine What Loan Program Offers the Best Benefits

An assessment of available home loans could present consumers with a clear picture of programs for which they qualify. For example, consumers with higher than average credit scores could qualify for a first-time home buyer’s program. These opportunities could present them with a little to no down payment requirements.

FHA loans are secured by the government. Select programs could help pay a portion of the homeowner’s mortgage each month. For consumers with lower income, this could present a real opportunity to buy a home. A Mortgage Broker Newcaatle could help the consumer make this selection.

Identify the Down Payment Requirements for the Loan

The down payment requirements for the loan are based on the type of program chosen. These requirements could equate up to twenty percent of the mortgage. The lender helps identify the total down payment based on the guidelines for each of these programs.

Consumers should follow steps for preparing to acquire a home loan. By following the steps, the consumer identifies ways to increase their credit score. This could help them qualify for more loan programs. Consumers who are ready to start the process should contact Mortgage Masters today.