Buying a house is part of the American dream, and because of this, millions of people attempt to get their first mortgages without truly understanding the process. By going into the lending process prepared, and by having some solid knowledge of the process and your finances, you are far more likely to not only get approval for your loan, but get a good interest rate, as well.

When to Start Planning

Applying for a mortgage loan should never be a snap decision. In fact, most lenders recommend you start preparing 12 to 18 months in advance. There’s much to do in this time. You will need to scrutinize your credit history with a fine-toothed comb, pay off any outstanding debts you might have, gather and maintain accurate records, keep spending to a minimum, and keep working at your job or your business venture to boost your income as much as you possibly can. It sounds like a lot because it is a lot, but if you’re willing to focus, it can be done. read more