Here are some steps you can take to ensure you get your ideal home loan with ease.
Understand Your Budget
Before you start looking for houses or apply for a home loan, first get a clear understanding of your budget. How much can you spend? How much do monthly utilities cost? How much may you have to spend on the house’s repairs and maintenance? The answers to such questions will help you determine what kind of a loan (conventional, FHA, and the like) would suit you the best.
If you are unsure, speak to a financial advisor. You cannot afford to regret a long-term loan.
Check Your Credit Score
Although the bank will run a credit check while processing the loan application, if you’re unsure about your credit standing, check your credit score for free by visiting websites like AnnualCreditReport.com.
If your credit score isn’t impressive, you can rebuild it by taking some steps. Better credit means better interest rates. Ensure your credit stays stable throughout the loan application process.
Gather Your Documents
Whether you’re pre-qualified or going to apply for the loan, gathering your official documents beforehand is a good idea. You’ll need copies of your recent paycheck stubs (usually a month’s), your past two years’ W-2s, and other relevant information.
Self-employed individuals may also need to provide additional documentation like the extended versions of their previous years’ tax returns, bank records showing payments, and more such documentation.
You’ll also need personal identification documents like your social security card, birth certificate, and the like. Keep in touch with your loan advisor from the start to know what documents will be needed.
Don’t Add Any Extra Financial Burden
During the mortgage review period, don’t take out a personal loan, buy a car, charge up your credit cards, or do anything that may affect your financial standing.
Shifting large amounts of money may affect your credit score, which may even lead to loan denial. Banks like to see additional savings in your accounts to be sure that you’re financially sound.
Be Ready For Surprises
As you won’t know the final cost until days or hours before you sign, once you get a rough estimate of the cost, plan for the worst-case scenario. Stay in close contact with your real estate agent, attorney, and bank to keep the surprises to a minimum.
How Important Is Auto Rental Insurance?
Here are some things to know about what to do if you damage a rental car, about auto rental insurance and its importance.
Any Damage To The Vehicle Is On You
If you don’t have auto rental insurance, even if you were using the car to save orphans from a burning building, the rental company is going to hold you liable for any damage to the vehicle. The loss damage waiver included in the umbrella insurance offered by the rental car company should be the one you consider. This part of the insurance covers vehicular damage.
Know The Coverage Provided By Your Insurance
Before you rent a vehicle, check your personal car insurance and the insurance offered by your credit card. Supplement whatever is not covered by these insurances, through the rental agency’s insurance.
If your personal car insurance is comprehensive and offers liability, you may not need to purchase supplemental insurance. Verify the same with your insurance company.
Credit card rental car insurance may be of two types—primary or secondary. Primary insurance is the first line of defense in case anything happens to your rental car. Secondary insurance means you’ll first have to contact your personal car insurance company and file a claim, after which your credit card company may help you in the process.
Have Copies Of Everything
When you file your claim, the benefits administrators are going to ask you for several things that you may not even know existed. Get copies of every document along the way to have it ready if any authority asks for it.
Have Proof In The Form Of Pictures
It is always a good idea to have lots of before and after pictures of your rental vehicle in the event of an accident. This protects you from the company charging for those damages to the vehicle for which you aren’t responsible.
Reject The Arbitration Provision
When you rent a car through some companies, irrespective of what is your preference, you agree to private arbitration if there’s a dispute. This means that during an arbitration process, among other things, you will not be allowed to make meaningful appeals. Additionally, the process is usually heavily in favor of the corporation. Inquire with the rental agency if there is a way you can reject this provision, and if there is, how you can do so.
