Home Loan Tips You Need to Know to Successfully Get a Mortgage |
 Home Loan Tips 1: Don't Apply for Other Credit Whether you have good credit or bad credit, it is important not to apply for any other loans or credit cards within 6 months of your mortgage application -- with the exception of inquiries that were made in search of your new mortgage. You should also not obtain any new accounts that are reported on your credit report within a year of applying for a mortgage. Having either of these will make it harder for you to get your loan approved at the rate you want. The closer new inquiries or new accounts are to when you apply for you mortgage, the harder the process will become. This home loan tip is important because lenders, who are considering giving you a mortgage, want to know that you are completely financially stable and seeking new credit makes them question this. Home Loan Tips 2: Make Sure Everything Is Paid You should also make sure that you do not have any outstanding collection accounts or owe any of your past creditors any money. Many creditors and collections agencies subscribe to a service through the credit reporting agencies, where they are notified when you attempt to find financing for a large purchase -- such as a mortgage. They know that if you are applying for a mortgage, it means that you know have the financial ability to pay your debt to them. They also know that you will not be able to close on your mortgage if you have any unpaid past due debt on your reports. These two reasons almost guarantee that if creditors or collection agents are after you, they will make themselves known during your mortgage process. This home loan tip is important because, although you can pay these off during closing, you want to make sure that nothing pops up that you cannot afford to pay off in a hurry. Home Loan Tips 3: Get That Score Up! What's the magic score for getting a home loan? 580. This is what you mid-score should be for your best chances at getting a mortgage. It may not be the most favorable mortgage, but it will be the money you need towards your home. Your mid-score is calculated by taking all three of your FICO scores and determining which one of the three is your middle score. This home loan tip is important because you do not want to needlessly look for a mortgage if your middle score is well below 580. Following these home loan tips will help make it easier for you to get the mortgage that you need, without running into brick walls that will only hold you back. |
