"How To Qualify For a Mortgage"

These 10 tips will help increase your chances to qualify for a home loan.

Don't change jobs. The longer you are in your current job, the better your application will look to the lender. If you are considering changing careers, try to do so after your mortgage closes.

Postpone major purchases or taking any new loan, such as buying a new car. Keep your debt level as low as possible (50% DTI) until after you buy your house or refinance. Extra debt could hurt your chances of getting a home loan.

Avoid depositing large amount of cash into your bank accounts without clear explanation. Lenders don't like surprises, and may think that money is really an undisclosed loan.

Keep all your bank statements and pay stubs. Most lenders want to see pay stubs for each applicant, showing earnings for the last 1 to 2 months and year-to-date earnings. These must be computer-generated or typed originals that identify the employer and employee's name.

Dig out your tax returns. You'll need last year's W2 and 1099 for each applicant. If you're self-employed, the lender may require your personal and business tax returns for the previous two years and your company's year-to-date profit and lost statement.

Lower your debt. Try to make extra payments toward the principle balance of all your debts. The lower you can make your monthly debt (Debt To Income Ratio, DTI), the better your chance to get a loan and a lower rate. This will help your credit score when you apply for a loan.

Pay all your bills on time. This is not the time to be forgetful with your payments. If you're late with your present bills, an underwriter may presume you'll also be late with mortgage payments, should your loan be approved.

Have evidence that you've paid your rent or mortgage for the past 12 months, such as canceled checks.

Do whatever you can to stay out of lawsuits. A person involved in a lawsuit is at potential serious financial risk, someone few lenders will want as a borrower

Limit the times you apply for credit. Every time you apply for credit, an inquiry goes on your credit report. For every inquiry in a given time period, your credit score is reduced. You could be turned down for a lower rate because you have a low credit score. Many borrowers get hurt with all inquiries made on their credit. Resist to the temptation of giving your social security to every sales person who ask for it. Those high pressure sales people do not care if you can qualify or not for a lower rate. If your credit score goes down because of too many inquires, you'll end up with a higher rate and you will pay TENS OF THOUSANDS OF DOLLARS IN ADDITIONAL INTEREST PAYMENTS over the life of the loan.

Andre Plessis

Andre Plessis
"The Mortgage Guru"
"A Mortgage Professional whose primary goal is to provide the expertise, guidance and skills necessary to obtain the best mortgage to meet your personal needs".
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P.S. If you are at all intimidated or unsure about the mortgage process if you don’t understand how to evaluate your options in getting a mortgage loan our 15 key questions will help you feel comfortable that you are making the best decisions. Also if you are in the process of refinancing your home with anyone, CALL ME and I will let you know if you are being offered the best loan option based on market conditions and your financial situation.

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