Financing for your new home
Know your Credit
+Do make all of your payments on time. No matter what kind of obligation, be sure to pay on time. Any late payments can affect your credit score negatively. +Do keep all of your credit card balances at or below 50% of their high limits. This will assure that your credit scores are the highest. +Do get pre-approved!! Don’t just get pre-qualified. Being pre-approved will make your home offer much stronger and will assure that you will be able to obtain the financing needed to purchase your new home. +Do keep a paper trail of all of your deposits by making a copy of all checks received. Lenders are required to verify the source of all large deposits to be sure they come from eligible sources. +Do save as much as possible as often as you can. The increased assets do make your financial profile look much more appealing to lenders and by saving enough you may be able to have a larger down payment. -Don’t make any large purchases. Any large purchase such as a car, major appliances, or furniture will not only affect your credit score, but the resulting payment may affect the amount of mortgage that you can qualify for. Even if there is no payment required for a period of time, the future payment will be counted as a current obligation in qualifying for your mortgage. -Don’t open any new credit cards or accounts, even if the account is “90 day same as cash”, “no payments for 12 months” . No matter what kind of account, your credit will be affected negatively with any new account. -Don’t allow your credit to be pulled numerous times. Each time your credit is pulled, your credit score may be affected negatively. -Don’t cosign for anyone on any type of account. This will have the same negative affect on your credit as if you applied for the account. And if any payment is missed or late, it will hurt your credit. -Don’t quit or change jobs without contacting your lender first. Job stability is an important factor in evaluating your ability to repay the mortgage.Ten Do’s and Don’ts for getting the best mortgage