Four years after the United States went through an economic scare and first-time home buyers in Michigan still feel like they’re feeling the pinch.  Many are finding it still difficult to obtain a mortgage after years of easy credit – the market isn’t the same anymore but if you’re trying to obtain a mortgage in Michigan, it’s not as difficult as many make it out to be.

You just need to get affairs in order and take simple steps to plan ahead.  Here are tips on how to start planning to get the best mortgage deal you can.

1. Check Your Credit Rating

It doesn’t matter where you apply, be it a mortgage banker in Michigan or straight through a financial institution, lenders are going to look closely at your credit.  When reviewing your history and score, mortgage bankers look over adverse credit history.  If you’re planning to acquire a mortgage in the future, then prevention is key.

You can’t fix what has already happened but you can improve the now.  Provided your history is free or has minimal negative impact then a lender will review your positives to see if you’re a responsible borrower.  Items that can contribute to an approval rating aren’t necessarily financial and include keeping your bank account in the blank – and even registering on the electoral roll with local authorities.

2. Prepare for a Mortgage in Michigan with a Hefty Deposit

The concept is simply; the larger the deposit you have the easier it is to get approved for a mortgage in Michigan.  A larger deposit often means you can get a better deal on your mortgage as well.  For example, you will have the same deals available whether you have a 10% or a 14% deposit, but with a 15-20% deposit you’ll be able to get a much more attractive rate.

Even with a stellar credit rating, securing a large deposit is a smart move.  You’ll have extra money in the event of any emergencies, to handle moving and closing costs, for furniture and decoration, etc.  It makes the move into your new home that much smoother.

3. Shop Around

Don’t pick a single lender and stick with them until you can work through approval.  Speak with a mortgage broker in Michigan, talk to banks and try to find the best fit for you.  Some have stricter lending criteria, or may be localized to the point that internet searches for mortgage lenders in your area may not reveal all the resources available to you.

It’s important to note that a good broker is worth their weight in gold.  Mortgage bankers or mortgage brokers often have access to mortgage programs that aren’t readily available to the general public, and they can guide you by letting know whether or not you fit into a specific lender’s criteria.  That can save you a lot of wasted time and headaches.

4. Don’t Get Stuck on Interest Rates

Your interest rate is important, but it’s not the only factor you should be focusing on when applying for a first time mortgage in Michigan.  Some mortgage plans have fantastic rates to start, but come with additional set up fees, extended lock-ins and much higher interest rates as the loan progresses.

You may even want to consider paying a higher interest rate in order to benefit from a more flexible mortgage.  A fixed rate is attractive to a lot of first time buyers who want the peace of mind in knowing their mortgage payments won’t change irrespective to what happens with bank rates and economic trends.

5. Consider a Tailor Made Mortgage

Depending on the lender, you may be able to work out a custom mortgage agreement.  Everyone has different circumstances, ones that may not be met with a standard two year fixed rate mortgage for example.

It may also be possible to combine repayment methods, mixing part repayment and part interest-only.  To find out what’s available to you, talk to a mortgage banker to discuss your options based on your own circumstances and financial position.

Preparing for a mortgage goes beyond cleaning up your credit and ensuring you have open credit accounts.  To make sure you get the best possible rate without damaging your credibility, talk to a mortgage banker before you do anything else.  You’ll be able to get insight into the next immediate steps to improve your road to a great mortgage rate and your first home