To make the process of applying for and obtaining a mortgage effective and easy, many mortgage brokers recommend that homebuyers undergo a mortgage analysis before they shop for a loan. A mortgage analysis typically takes place as a conference between you and a lender or a broker, and involves discussing various components of your financial situation in detail. The more information you can provide, the better your mortgage analysis will be. Often times, the type of mortgage you can qualify for is based on two main factors: your credit risk and how much down payment you can afford. Generally, the amount of negative credit you have is relative to the amount of the down payment you'll need to pay for the loan. As a result, your broker most likely will pull your credit report and ask you about your employment history, personal debts, investments, and other sources of income. He or she will attempt to assess your qualifications using this information. Once the assessment is complete, the broker will inform you of all the available financing options that fit your financial needs, and make sure you understand the pros and cons of each. The knowledge you gain from the mortgage analysis should assist you in making informed choices as you shop for a loan.
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