What “TO DO” During The Mortgage Application Process
What should be on your “To Do” list during the mortgage application process?
When you’re going through the home buying process, how do you separate good information from misinformation?
Qualifying for a mortgage, looking at properties, and preparing an offer are all steps that require professional guidance, but with all of the information available, it’s sometimes hard to know what is right and wrong during the mortgage application process.
This short video tip will go over what “TO DO” in order to keep you and your dream of homeownership on the right track.
1. Stay current on your existing accounts:
If there are late payments on your existing mortgage, car payment or any other item which reports to the credit bureaus, it could dramatically drop your credit score, and eliminate your ability to purchase a home.
Just one 30-day late payment has the ability to drastically reduce your credit score very quickly.
2. Maintain appropriate credit cards balances:
It is very important to make sure that your credit card balance is low in comparison to your credit card limit. Note that it isn’t the balance that counts, but instead the ratio of your balance in comparison to your credit limit.
Having credit cards that are at or near their limit is a formula that can damage your credit score.
3. Potential medical collections:
Way too often I see a small collection that was as a result of miscommunication between the insurance company, doctor’s office, and the patient. This can rapidly decrease credit scores and in some cases be a reason for loan denial.
4. Rental History
When rental history is required, paying by check is a clear way to verify your payment history, and remember that while paying by cash or money order may seem convenient, it will not always be an acceptable form of verification by underwriting.
5. Don’t be afraid to ask for advice
Your mortgage lender is the best resource for details about what actions help or hinder your loan approval.
If you have any questions or concerns about a financial event you are considering during the loan process, ask your mortgage lender PRIOR to taking action.
We are here to help you navigate the process and make it as smooth as possible.
Whether it be FHA, VA, USDA, or Conventional – just call or email to discuss your scenario and let us show you the “Metroplex” difference.
800-806-9836 Ext. 280
I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
Qualifying for a home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the loan process, it is a match that can open the door to home ownership.
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So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.
Whether it be USDA, FHA, Conventional or VA loans, just call or email to discuss your scenario and let us show you the "Metroplex" difference!
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