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Find your Credit Rating
Request a copy of your credit report. You are entitled to one free report per year. Visit one or all three credit reporting agencies to order your credit report.
Order your credit score. You will have to pay for this, but the cost is typically under $10.
- A score of 620 or greater is good
- A score of 675 or greater is better
- A score of 750 or greater will allow you to negotiate the lowest rate
Figure your Debt-to-Income Ratio
Add your total net (after taxes) income including any bonuses, commissions and overtime. Add alimony, child support, pension, investments or other income you receive every month. (Example: $8,500)
Add all your monthly debts including rent, mortgage, credit cards, student loans and any child support or alimony payments you make. (Example: $2,800)
Divide your debt by your income. (Example: 2800/8500 = .32)
Your debt-to-income ratio should be less than .36, or a score of 36.
Gather Information for Your Application
Collect your W-2s and federal income tax returns for the previous 2 years.
Find your profit and loss statements for the
past 2 years, if self-employed.
Have your business and personal income tax returns for the past 2 years on hand, if self-employed.
Locate your income statements and stubs for the past 2 years from social security, disability, pension, investment dividends, child support, alimony, bonus and overtime pay and rental property.
You'll need statements and records of all assets for the past 2 years. Include account names, addresses, outstanding balance and account number for all checking and savings accounts, credit union accounts, mutual funds, 401k and retirement accounts, secured accounts like stocks, bonds, investments and life insurance, and any cars, trucks or recreational vehicles you hold the title to.
Gather payment records and statements for all debts for the past 2 years. Include creditor name, address, outstanding balance, original balance and account number. Debts include mortgages, lease agreements, auto or recreational vehicle loans, student loans and credit cards.
You'll have to show any legal document requiring you to make payments to previous creditors, alimony or child support.
Bring your purchase agreement for the house.
Bring a copy of the listing sheet from your real estate agent.
Have the names and contact information of everyone involved in the matter, including attorneys and real estate agents.