Preparing Yourself To Get 30 Year Fixed Loans

30-year fixed rate loans are one of many loan products available to consumers. Fixed rate loans guarantee you will not have fluctuates in the interest rates that you paid. However, you will need to establish trust and examine your own credit worthiness before getting the bank to lend money to you. This permits you to obtain financing and get low interest rates.

Steps for Getting 30 Year Fixed Loans

Establishing credit worthiness is the first thing you need to do before applying for financing. All that you need to do is get a tri-merge credit report from the three major credit bureaus. If you have less than a 620 mid-score, you’ll have difficulty getting a 30-year fixed rate loan. If you have credit at 720 or above, you’ll be looking at locking into low interest rates. It is best to pull your credit at least 6 months prior to applying for the loan because this will give you time to pay down debts and dispute inaccuracies. A higher credit score will result in a lower interest rate, so taking care of issues early on will save you money in the long run. Your paperwork is the next thing to take care of.

• Collect your last two years of W2s
• Last 30 days of pay stubs
• Last 60 days of financial statements on all accounts

Lending institutions, regardless of who you choose, will need to assess your income and finances to determine if you can afford the monthly payment on a loan. Be prepared for the lender to have more paperwork for you to fill out. If there are circumstances that might show inconsistencies in your finances, you need to be prepared with a letter of explanation. Any gap in employment or recent income changes need to be disclosed upfront to avoid problems in the middle of the loan process.

If you have a lower credit score from past events, explain why. Lenders will take into consideration extenuating circumstances such as temporary periods of unemployment, medical illness, and divorce, but unless you disclose the reason for your credit issues, you might not be approved for a 30-year loan. If everything works out, prepare for the loan process to take up to 30 days and sometimes a little longer.

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