You may not be able to control every little aspect of your mortgage application process. Still, it would be best if you took control of those that fall under your influence.
Follow these 16 mortgage tips to help your chances of landing the best mortgage:
1 – If you have to miss a payment on one of your bills for any reason, don’t fret: you can still qualify for a mortgage. Never miss an existing mortgage or rent payment.
2 – To show a lender that you’re a reasonable risk for paying back your mortgage loan, pay all of your current bills on time. Every time you miss a payment by 30 days or more, it reduces your credit score and sends up a red flag to lenders like GoPrime Mortgage, Inc. A higher credit score also can lower the interest rate and overall costs you’ll pay.
3 – Of all the 16 mortgage tips – do’s and don’ts, the most obvious is to be disciplined about saving money every month. Suppose you can show that you put money aside at regular intervals. In that case, lenders will know you are serious about and capable of handling your finances. Saving also helps you build your down payment, even though not all loans require one.
4 – Having a good relationship with an independent mortgage lender like Zachery Adam and his Team at GoPrime Mortgage, Inc. positions you as a serious buyer. GoPrime Mortgage, Inc. helps you shop your mortgage to accommodate your unique needs and line up the perfect loan type and terms.
5 – In the months before you apply for a mortgage, do everything you can to maintain a high credit score or raise your score. If you haven’t done it in over a year, request a free credit report from all three bureaus: Equifax, Experian, and TransUnion. Look for mistakes or evidence of fraud that lowers your credit score erroneously.
6 – Since mortgage loans offer the lowest interest rates around, it may make sense for you to use some of your down payment toward other debt. For example, suppose you have the flexibility to lower your down payment. In that case, you’ll end up with a more considerable mortgage amount, but at a lower rate than your other debt, such as credit card debt. Plus, the interest you pay on your mortgage is tax-deductible, so you win twice.
7 – Applying for new credit cards, accruing new debt, or doing anything that causes credit inquiries can all lower your credit score. Consider applying for your mortgage before anything happens to lower your credit score. A lender scrutinizes your financial activities in the months before you apply for a mortgage.
8 – Gather all the paperwork documentation you may think you’ll need when applying for a mortgage. Every mortgage application is slightly different, but check the Document Checklist to get a sense of the documents you may need. By doing this early, you’ll ensure that you don’t mistakenly discard something you’ll need.
9 – This might go without saying, but it bears repeating: be honest. Report your income and debts honestly and thoroughly. If you’ve had credit problems in the past, tell your lender up-front; it will come up anyway. It’s better to bring it up and find a workaround.
The other side of 16 mortgage tips is the activities to avoid.
These common-sense warnings can save you money and make it easier for you to be approved for a mortgage. These 16 mortgage tips help whether you are a first-time homebuyer or a seasoned home-buying veteran:
10 – If you’re getting ready to buy a house, make that your priority. Don’t buy any other big-ticket items in the months before you apply for your mortgage. Any additional purchase reduces the amount of cash reserves you have for your down payment. In addition, if you have to dip into your credit, it will impact your credit score and add to your monthly expenses.
11 – If possible, don’t accept a new job in the months leading up to your mortgage application. Lenders prefer to see a stable employment history and a stable income. Therefore, it’s better to wait until you close on your new house before making a big career move.
12 – To avoid becoming “house rich and cash poor,” look for a mortgage amount that fits your current budget. In other words, just because you may qualify for a larger mortgage doesn’t mean you must take the total amount if this stretches your budget to the breaking point. What good is having a beautiful house if you can’t afford groceries?
13 – Get pre-approved for a mortgage before you start house hunting. Getting pre-qualified does not guarantee that you’ll get a mortgage for the amount you want. Getting pre-approved, on the other hand, follows the same intense procedure as applying for the loan. Once pre-approved, you can make an offer knowing you have access to the money you need.
14 – Don’t make any changes to your credit card finances. Anything you do in the months before you apply for a mortgage attracts the attention of a lender. Don’t pay off all your credit cards, don’t cancel any of your credit cards, don’t open new credit cards, and don’t transfer credit card balances. Just don’t. You might inadvertently lower your credit score, which can hurt your chances of getting the best mortgage terms.
15 – Don’t settle for a standard mortgage. Instead, get the right mortgage for your situation. Consider your spending habits, your saving habits, and your lifestyle when deciding between different mortgage products. An independent mortgage lender like Zachery Adam of GoPrime Mortgage, Inc. listens to your needs. He works with you to match the perfect loan and the best rate to fit your circumstances.
16 – Once you make it to the big day of your closing, here’s one more piece of advice to heed. Never sign a blank page unless it says: “This page intentionally left blank.” anyone can fill a blank page in later.
The best loan to fit your situation at GoPrime Mortgage
If you’re shopping for a house and mortgage today, you have more choices than ever before. Independent mortgage lenders like GoPrime Mortgage, Inc. provide a full range of loan products and competitive rates. The most effective independent mortgage lenders work with you to get the best loan to fit your situation. Learn more about your mortgage loan options; schedule a face-to-face consultation with Zachery Adam and Team with GoPrime Mortgage, Inc. today. There’s no obligation.
Getting approved for your first mortgage — or your fifth — is now more attainable than ever. That’s because you have more choices than ever before. The rise of independent mortgage lenders fills a growing need in every community in North Carolina.
Affordable Homebuyer Programs
I am a first time home buyer.
Recent Blogs by Zachery Adam
Tips for Buying a Home in the Hot North Carolina Market We know that many people outside the Asheville area are currently looking for homes in North Carolina Market. We are excited about the opportunities for more people to buy here and become a part of the...
Homelessness in Cold Weather: Resources and Ways to Help After the holidays, some of us seem to let charitable work wane until the next holiday season. But the circumstances around the homelessness crisis don’t stop just because we get back to our regularly...
National Hobby Month: Meet-Ups and Enthusiast Groups for Hobbies in WNC Welcome to the New Year! It's common when we turn the calendar to think of all the resolutions we will make, including improving our finances, finding a new job, or getting healthier. Well, one...
Branch Manager, Loan Officer
"What we do is so far more important than lending and buying houses. We are in the business of facilitating dreams and honoring the start of a new home.”
"“I wake up every morning with incredible appreciation. I love what I do.” ”
Loan Officer Assistant
"My eventual goal is to become a loan officer. I love working within the community and being a part of the GoPrime Mortgage team.”