Lowest Mortgage Interest Rates in Years! How to Get Your New Loan!

Economists and housing experts are now saying that interest rates may now have "bottomed" and are at their lowest interest rates ever! Low interest rates on conventional loans are now at 4.85%, and are poised to increase, rather than decrease, in the future. If you are like me, these lower interest rates may finally be the reason to sell or buy your home or to refinance your existing home loan. When rates started dipping below 6 percent, I ran to my favorite mortgage broker, only to find a completely different credit world. So learn from my experience, and follow these simple steps BEFORE trying to sell, buy or refinance because getting a low interest rate loan is both a factor of a good market and being prepared to obtain a loan.

STEP 1 - CHECK YOUR CREDIT REPORT AND KNOW WHERE YOU STAND.

Nothing derails or halts a new loan more than a credt report with errors, problems or negative notes regarding payment. Thanks to a 2004 Federal Law, every person is entitled to one free credit report each year from each of the main credit reporting agencies--Equifax, Experian and TransUnion. The credit report must be requested through a centralized source.

To get your FREE credt report online, visit www.annualcreditreport.com. By telephone, you may request your FREE annual credit report by calling (877) 322-8228 and then following a few simple steps to verify your identification. By mail, you may request your FREE credit report by filling out the request form available at www.annualcreditreport.com and mailing it to Annual Credit Report Request Service, PO Box 105281, Atlanta, GA, 30348-5281. Reports requested by mail are processed in 15 days and should be received by the requester within 2-3 weeks.

Once you receive your report, make certain that the following information is correct:

1. Your name or names and marital status

2. Your social security number(s)

3. Dates or birth

4. Addresses of the places where you now live and have lived in the recent past

5. Names of places where you have worked

6. Pending accounts or any accounts that have been closed

If you find problems or inaccuracies with any of the information on your report, take the time to contact the creditors to make corrections or work with a consumer credit advocate to help repair any problems.

STEP 2: FILE YOUR TAXES!

Okay, I'll admit it, I'm often the last person filing taxes each year and I usually file an extension on April 15. If you're contemplating a new loan or home purchase, however, tax returns must be filed for the past TWO (2) years and will, in many cases, be verified through the IRS. If you are just starting to file your taxes for 2008, a lender may ask to see the returns for 2006 and 2007. If you just filed amended returns for any period (as I had), it takes between 10-16 WEEKS for taxes to be received, processed and verified through the IRS, so anticipate a wait if you're just starting to file taxes for any prior years before 2008.

STEP 3: Gather Financial Documents

Depending on the loan program you choose, you may be required to provide more or less of the following documents. However, to make it easy to get your new lower interest rate loan, gather these important papers now and have them ready to show your mortgage broker or lending institution:

1. Pay Stubs for Six (6) Months

2. Year End 1099s, W-2s and Annual Reports

3. Three Months worth of bank statements for each bank account

4. Three Months worth of statements for any investment accounts, stock plans, 401Ks, SEPs or IRA accounts.

5. Self-Employed? Have the CPA prepare your financial statements--balance sheet and income statement for the year end and for the most recent quarter end.

6. Copies of Driver's License or Photo ID

7. Copies of Social Security Cards - the actual card, not just your social security number.

8. If you receive social security benefits, have copies of your annual social security benefit statement for 2008 and 2009.

Having documents available and ready for your loan application will go a long way toward getting your low interest rate refinance or money for the purchase of your new home! Good luck!

Questions, write to me here!