Buying a new mobile home is an exciting time for all home buyers. It can be all you think about – that brand new home. As exciting as it might all seem, try not to get wrapped up in the fun and end up going into home ownership unprepared. Also know it’s very likely you’ll need a mobile home loan for your new home.

Here are some home loan tips to help you get all of your ducks in a row first. If you follow these simple steps, you’ll have a better chance of your mortgage application being approved and getting the best home loan possible.

1. Get Your Credit Score

You’re on time with all your bills –  credit card, auto loan, and others. Your credit score’s probably good, right?

Maybe, or maybe not. There is no way to know for sure unless you actually pull your credit score. There are several variables influencing your score, so it’s difficult to predict what yours will be without checking.

2. Get Pre-Approved For A Mobile Home Loan

Don’t head out to look at new homes without a pre-approval first. You need to know how much the bank will loan you and approximately how much your payments will be. Otherwise, you could end up falling in love with a home that is unfortunately out of your reach.

3. Figure Your Budget

It’s not uncommon for banks to approve you for more than you can actually afford. Take a look at your lifestyle and how a new mortgage payment would factor into that. Understand your personal maximum (it may or may not line up with the bank’s pre-approval), and begin looking for homes that fall under that highest number.

4. Have A Down Payment

Except for a few loan types, you’ll need a down payment for your mobile home loan. Typically, you can expect to put down at least 3.5% of the mobile home purchase price.

You’ll also need money for the inspection, appraisal, different application fees, and various other closing expenses. These items add up, so its best to have a little cash in reserve.

5. Don’t Change Employment

Lenders use the employment information you provide at the time of application for their loan decision. If you receive an approval, don’t change your employment or income status until you’ve closed. Changing your employment  during the application process will significantly delay the lending process at best, and at worst, it could cause you to be denied for your loan altogether.

6. Be Responsible With Debt

Try to start the loan process with as little debt as possible. Lenders evaluate your debt-to-income ratio when deciding if they’ll give you a mobile home loan. Your debt payments should be very manageable, and you can get a better rate if your debt-to-income ratio is very low.

In addition, don’t add to your debt during the loan process. Lenders will pull your credit again before closing, so wait to make major purchases until after you have closed.

Applying for a mobile home loan can be both an exciting and stressful event. Just remember these tips and the mobile home loan application process should be relatively simple and easy.

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