4 Simple Tips to Obtaining a Mortgage
Mortgage lenders and banks are very cautious about home mortgage these days, right up to the closing date. To make sure your closing goes smooth simply follow these four easy steps provided by MSN Real Estate.
1: Avoid ANY major purchases before closing your mortgage loan. Some homebuyers think that just because they have a mortgage deal lined up, the deal is done. NOT SO! Banks have been known to pull mortgages when the homebuyer buys a new car, or makes another major purchase, Such purchases suggest more debt for the homebuyer and more risk for the banks. Avoid big ticket items until you have signed on the dotted line.
2: Prepare for last minute credit check. This is related to point number 1. but the twist. With new rules initiated by Fannie Mae's loan quality initiative, which went into effect June 1, banks and lenders will make a second credit check right before closing. So if you miss any credit card payments or are late on a mortgage payments between the time you were approved for a mortgage and the actual closing date, you maybe putting your new home in jeopardy. Even applying for a new credit card can trigger a credit score inquiry, which could reduce your credit score and threaten your home loan.
3: Don't make any big career changes. Lender also weigh your salary and job stability when evaluating home loans. Any career move you make could jeopardize your home mortgage loan. At worst, the bank could pull the loan. At best, it could delay the process until you demonstrate your new job is a stable one that guarantees you'll have the financial resources to pay your mortgage debt.
4: Watch out for closing cost surprises. Some homebuyers put every last penny into the mortgage down payments and don't leave enough to pay closing costs. That could be a big mistake. Closing costs can be as much as 3% of the cost of a new home, that's $6,000 for a $200,000 property.
I hope you have found these tips to be useful and please keep them in mind the next time you are in the market for a new mortgage loan.
1: Avoid ANY major purchases before closing your mortgage loan. Some homebuyers think that just because they have a mortgage deal lined up, the deal is done. NOT SO! Banks have been known to pull mortgages when the homebuyer buys a new car, or makes another major purchase, Such purchases suggest more debt for the homebuyer and more risk for the banks. Avoid big ticket items until you have signed on the dotted line.
2: Prepare for last minute credit check. This is related to point number 1. but the twist. With new rules initiated by Fannie Mae's loan quality initiative, which went into effect June 1, banks and lenders will make a second credit check right before closing. So if you miss any credit card payments or are late on a mortgage payments between the time you were approved for a mortgage and the actual closing date, you maybe putting your new home in jeopardy. Even applying for a new credit card can trigger a credit score inquiry, which could reduce your credit score and threaten your home loan.
3: Don't make any big career changes. Lender also weigh your salary and job stability when evaluating home loans. Any career move you make could jeopardize your home mortgage loan. At worst, the bank could pull the loan. At best, it could delay the process until you demonstrate your new job is a stable one that guarantees you'll have the financial resources to pay your mortgage debt.
4: Watch out for closing cost surprises. Some homebuyers put every last penny into the mortgage down payments and don't leave enough to pay closing costs. That could be a big mistake. Closing costs can be as much as 3% of the cost of a new home, that's $6,000 for a $200,000 property.
I hope you have found these tips to be useful and please keep them in mind the next time you are in the market for a new mortgage loan.
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