If you are planning to purchase a home within the next few months, there are certain mistakes that you must avoid as they will hinder your ability to get a home loan. The following are Bennington purchasing mistakes to avoid.
Bennington Purchasing Mistakes To Avoid
Mortgage companies evaluate the percentage of your debt to your earnings. Increasing debt on either your credit cards or n the form of new loans can dramatically change that percentage. In general, the higher your debt, the lower your loan qualification. This is even more critical once you have under agreement to purchase a home. Mortgage companies may re-run your credit report shortly prior to settlement to confirm that your figures has not significantly changed. If you gained additional debts, this can cause issues with obtaining the mortgage.
As part of the mortgage process, mortgage companies look at your previous and present employment to evaluate your ability to make payments. A solid history in employment is very important. Shifting employment prior to or during the loan process may create issues with qualifying for a mortgage, particularly if the new employment is in a different field or provides less income. During the loan process, it can also lead to delays while the new job is verified.
Mortgage underwriters generally review your bank account statements over the last several months. Transferring money to a new bank can create issues. It is best to keep money in the same place until the closing completes.
Many types of mortgages mandate that you use a specific amount of personal funds for the down payment and/or settlement costs. Mortgage companies verify this by analyzing bank statements. Any cash deposits are closely scrutinized. You may be asked to verify the source of such deposits.
While preparing to buy a home, you may try to pay down credit cards. Before starting this, consider consulting with a mortgage consultant on whether it is needed given your financial situation. If you do pay off bills, do not terminate the accounts as this will lower your credit rating. It may be best to keep the accounts up without a balance.
Additional Advice on Bennington Purchasing Mistakes To Avoid
The above Bennington purchasing mistakes to avoid covers just a few examples. As a local real estate broker, I can provide you with a list of local lenders in the Bennington area. You may reach me, Troy Richardson, at Maple Leaf Realty via phone at 802-447-3210 or email at firstname.lastname@example.org.