If you’re in the market for a new home in the Chetek area this spring, you’ll likely have spoken to a lender already or will be in the near future. But before you begin your application for a mortgage, you will need to be prepared in order for any lender to approve your loan.
So, what needs to be in order before visiting with your lender? Chetek and Cameron homebuyers should keep in mind the four C’s:
Credit
As you can imagine, your credit score will play a major role in your approval for a mortgage. Take the time to research your score and look for any errors. If you find an error, move forward with correcting them as soon as possible as oftentimes these can take months to fully clear. Chetek WI homebuyers should also continue to pay bills on time as lenders will want to see that you can manage your debt.
Capacity
Lenders will look at your income, your employment history, the number of and how you pay your monthly debts (for instance, credit card payments) and your savings accounts. With these in mind, they will be assessing your ability to pay back the mortgage on the Chetek area home.
Collateral
The value of the home is a dominant factor for lenders in their decision to approve your mortgage.
Capital
Do you have investments? Money in checking or savings accounts? Assets that could be sold for capital? Lenders often want to see that Northwestern Wisconsin homebuyers have at least two months of reserves to cover the potential mortgage payment and insurance. In other words, if you have the funds to back up your application for a home loan.
I know the homebuying process can seem overwhelming and it is our job to make it easier for you! We can recommend area mortgage professionals, help you find your dream home in the City of Lakes and take advantage of the low interest rates that we’re seeing right now.
Do not hesitate to contact us with any questions about buying a home in the Chetek area!
John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806
Email: john@sixlakesrealty.com