Buying a house is never an easy proposition when it comes to the housing market today. Securing a mortgage is getting more and more difficult with time, and it is always beneficial to go in prepared. There are certain measures you can take as soon as possible to secure a mortgage with agreeable terms. There isn’t any way to change credit reports or income statements, but several other steps can be taken to ensure that a favorable rate is not out of reach.

Let’s examine some of the things you should be aware of before taking a mortgage:

1. Keep your documents on hand
Before approving your mortgage, most lenders want some standard information. This includes the previous months pay stubs from anyone whose name is listed on the loan. Furthermore, two years’ worth of tax filings are also usually requested, so it would be important to keep this information in order. Some additional information may also need to be furnished when taking a mortgage, which usually includes three months of bank account statements. Also, you may need to present documentation related to large withdrawals or deposits into your bank account.

2. Spending capacity
Many lenders have strict rules when it comes to deciding your monthly payments in relation to your income. The monthly mortgage payments should not exceed 28% of your monthly income, and all revolving debt, including credit card debt, car loans, and other equal monthly installments, along with the possible mortgage, should not exceed 36% of your gross income. This ratio of the 28/36 rule is not fixed, and it varies from one lender to the other. While there isn’t any hard and fast rule, it acts as a dependable guide for how lenders screen your application.

3. Study the market
When you’re taking a mortgage, it is important to make a thorough and detailed study of the market you’re buying into. Some states may have stricter regulations. In some states or regions where condominium projects have not been popular, the state will impose norms and restrictions. As such, they will also look into the property or building you’re buying. This means a down payment can go as high as 25%. You are advised to enlist the services of a real estate professional to get a better idea of the housing market in your state or respective region.

4. Credit scores
It is important to raise your credit scores when taking a mortgage as that determines what your potential mortgage rate will be or whether it will be approved at all. The credit score can be received from a major credit bureau or through paid services, and some credit card companies also offer free services to get your credit score. It is important to dispute any discrepancies that could potentially mar the report and try to pay off any balances that are pulling down your scores.