Avoiding Problems Obtaining A Home Mortgage !!

Assure that your Credit Report is Healthy, or “Fix It” !!   

  • Months prior to applying for a loan, get a copy of your Credit Report

·         Determine your credit score (somewhere between 450 & 850)

·         Work with your preferred Lender, They will be glad to Help you through this

  • Work to fix the things that are negatively effecting your Credit report, As you resolve these issues, your Credit Score will start moving up
  • The Higher your score, the better Interest Rate and the better options you will get on your Loan
  • Resist making large purchases until you have “CLOSED” on your new Home. Large Purchases are an almost guaranteed way to loose your loan.  Save those purchases until the home is yours.  Don’t upset your credit before the big day.

 

 Shop and Compare Lenders
      
1)     Make a list of the Lenders you want to compare or consider.

2)     Make sure Lenders know that you are “Shopping for the Best Loan for you”.

3)     Ask about different types of loans, or loans that they recommend for you.

4)     Request a list of Interest Rates, Features and “Complete List” of Fees from each

Lender. 

5)     Remember the lowest interest is not necessarily the best loan for you and your

situation.  Consider the all of the options.

6)     If you like one Lender but they don’t include features you want, or include additional Fees, ask them about those features or Fees.  You may get what you want, especially in a slower market, where the competition may be greater.

 

Be a Buyer with a “Pre-Approved” Home Loan

   
Pre-“Qualification” for a loan basically means that you can sit up in the chair and hold a discussion with your Loan Officer about applying for a loan.  Having a loan “pre-qualification” means very little to a seller.  You are not approved for a Loan.        

 

Pre-“Approval” for a loan means you that your Lender has conducted “all” of the necessary checks, verified your credit worthiness and is now ready to grant you a home loan for an agreed-to maximum value.  Your lender will give you a letter to submit with your offer and is waiting for you to find the home you want to purchase.        

 

In order to get that “Pre-Approval letter” from your Lender, be very specific and assure that they run a complete credit check.  You want to assure that there is nothing else they will need to do, just write the loan.  You do not want to find later that there is a problem.  All the up front work is to assure that there will not be a problem.

    

Borrow only what you can afford
    
Considering all of the expenses that you must deal with each month, plus some occasional

unexpected expenses, leave yourself some breathing room.  Do not place yourself in the

position of being House Poor.  Leave a little room for a little fun or an occasional vacation

with the family.

           
Understand what your closing costs will be      
At the closing for your home, you may be expected to pay fees such as:    
  • Points and other lenders' fees
  • Title insurance
  • Taxes
  • Prepaid homeowners insurance
  
Understand what you must bring to Closing
     
Assure that you communicate fully with your Lender and understand what you must bring

to the closing.  You should have a HUD statement which includes your bottom line at closing. 

You may be required to bring a certified or casher’s check to cover those cost or fees. 

Usually a personal check or cash are not acceptable.

  
Moving into Your New Home, Plan to Have Funds available
              

Moving into your new home will include many expenses, planned & un-planned.  Hopefully

you have planned and have monies set aside to get you moved in and set up in your new Home.  A nest egg of two to three months of expenses would be a very good idea.