ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Basics of Mortgages

Updated on March 28, 2017

Mortgage Approval Pointers

There are many factors which play a role in determining whether a bank will approve you for a mortgage. These pointers will help you plan for the mortgage pre-approval and ultimate approval process:

  • Improve your credit. Higher credit will qualify you for better rates which will save you money. Credit improvement will be the subject of another Hub.
  • Collect your income information, assets, and liabilities in one handy place.
  • Establish a good relationship with a bank or a specific mortgage officer.
  • Take advantage of "bundling" your accounts at one financial institution for better rates and other discounts in the mortgage process.

We will unpack these pointers for you and provide some specific information to assist you.

Assembling Your Financial Picture for Mortgage Approval

The bank will require information on your income, assets, liabilities, and history with complete supporting documentation. Sometimes, if too much time elapses between pre-approval and closing, you will be required to update the information again. This results from excessive regulation from legislators / blow-hards in the wake of the financial meltdown. Keep all the following information and documentation in one, readily accessible place.

  1. Income - gather all information regarding your income. This includes pay stubs, past tax returns, rental incomes, dividends, side-hustles, or any other incoming money.
  2. Assets - this includes bank accounts, Certificates of Deposit, investment accounts, real estate holdings or anything else which factors into you net worth.
  3. Liabilities - Loans, credit cards, and other debts owed.

I keep a folder with this information included. It saves time and effort when loan application time arrives.

Make Buddies with a Bank

The old adage "it's not what you know, but who you know" rings true in every aspect of life. Applying for a mortgage loan is no exception. If you establish a friendly, working relationship with a bank and know specific people at the bank who can help you when the time comes, it can make a world of difference in obtaining speedy mortgage approval. When you call to let them know you need to close within a short period of time, they will be able to provide assistance and perhaps make a phone call to underwriting to get them to quit dragging their feet. It doesn't hurt to have significant funds on deposit or invested with the bank either. However, it is not necessary. A friendly relationship can go a long way.

Bundling Accounts at Banks to Get a Better Mortgage Rate and Waive Fees

Many banks offer reduced or fully waived origination fees and/or appraisal fees along with reduced mortgage interest rates to premier customers. For example, if between your deposit accounts, investments, and other loans, you reach a certain threshold balance, let's say $50,000, you get certain benefits like increased credit card points, savings interest along with perks on the mortgage. Thus, it can pay to bank with one single financial institution and bundle all of your accounts with them. If the bank discounts your mortgage interest by 0.25%, that can have a substantial impact on your monthly payment amount and can save you thousands of dollars per year.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)