With belts tightening up in 2012 for lenders, it’s getting more difficult for borrowers with even decent credit to secure a mortgage – and that likely won’t change any time soon.  Even with an experience mortgage banker in Michigan on your side, you’ll need to have your affairs in order to secure the loan you want.

Just because lending standards are tight through 2012 doesn’t mean you can’t secure a mortgage with a decent rate.  If you do your homework, you can count yourself as a savvy borrower once you understand the process and the rules.

Ready to talk to a mortgage lender in Oakland county?  Here are some tips to help you get started.

Getting a Mortgage in Oakland County – Study your Credit First

No matter who you are, good credit is the key to grabbing a mortgage with a great rate in the current economy.  Take the time to get detailed copies of your credit report from the three main reporting bureaus.  Look over each positive and negative notation on your report to check for errors.

Resolve any issues before you apply for pre-approval.  This is important because most Michigan mortgage bankers and lending institutions require a credit score of at least 680 in order to meet guidelines for approval from Freddie Mac and Fannie Mae.

The only exception comes from FHA backed loans which typically don’t have a minimum FICO score.  Even still, most lenders want to see a credit score over 620.

Filing for Pre-Approval for a Mortgage in Michigan – Get Prepared

There are certain documents that every Michigan mortgage banker is going to need in order to process a loan request for your first mortgage.  Don’t wait until they ask, have them ready.  This includes

• Pay stubs for the last 2-3 months
• W2’s
• Income tax returns for the previous year
• Bank statements

The lender may request additional documentation.  If so, make copies and keep these items together in a separate, easily accessed spot so if they are needed in the future you can retrieve them quickly.

Getting the Most from your Mortgage in Michigan

You need to know how much you can afford.  Don’t expect your lender to tell you how much you can afford.  You should be familiar with your finances to the point that you know the maximum mortgage payment you could be making each month without hurting your finances.  Budget accordingly and try to remember to figure in unforeseen expenses and emergency repairs.

The Clock is Ticking for Michigan Mortgage Lenders

When you apply for a mortgage, time is of the essence.  The clock starts ticking as soon as you submit an application, so make sure you send in requested documents immediately.  A Michigan mortgage banker can’t sit on your application forever.

If you delay in closing the load it could kill the purchase and in some cases, wind up costing you your deposit.  If you’re refinancing with a Michigan mortgage banker, delays in processing could mean losing the interest rate that was originally locked in.  Ask for the expected closing date right away and then follow up continually until the loan is closed.

Lastly, remember that once a lender pulls your credit and provides you with an approval, don’t assume the process is over.  Typically a Michigan mortgage banker or lender will pull your credit again before the loan closes.  Avoid making any financial decisions that could dramatically impact your credit score or change your credit situation.  Don’t close accounts, don’t finance a car – just stay put.