WHAT YOU NEED TO KNOW ABOUT THE MORTGAGE FOR YOUR NEW HOME!

 

FOLLOWING THE  4 STEPS BELOW WILL SAVE YOU TIME, MONEY, AND COULD EVEN DETERMINE IF YOU CAN QUALIFY FOR A LOAN!   

 

There’s an old saying something like this: “You need to prove that you don’t need a loan in order to get one”.

 

STEP ONE.  If at all possible, prepare your financial “snap shot” 2 months or more before you need it. For example, make sure all of your payments are made on time for your present mortgage, your car, boat, or anything else that cost over $2,000.  Mortgage loans usually have one more payment left after you think you have made them all.  This last one is because you were likely given a 30-day grace period before payments started, so make sure you’ve calculated that last payment as more money you bring to the closing table or escrow.

 

TWO.  Don’t buy a vehicle or spend money on large items like furniture and appliances until after you have closed on the house.  The Lenders always go over your financial position and check on last minutes purchases when you first start your loan and then one more time just before you close. If the Lender spots any changes, it will want to hold up the process until it is satisfied that the additional expenditures will not jeopardize them.  If the Lenders think your last- minute purchases will compromise your loan, they can cancel the loan.

 

THREE.  Don’t decide to consolidate your financial obligations before you close.  It might seem wise that Consolidating your current credit cards, etc., will make you look stronger; but Lenders often see that move as a symptom that you are in more financial trouble than they thought.  Debt consolidations are best accomplished several months or more before you start your mortgage loan.

 

FOUR.  If you believe you will need more money than you have and you are expecting parents or someone else to give you a substantial deposit to help,  make sure you get that extra money into your account a good two months before you start your loan application.  Even so, Lenders will want a written statement from the person or persons who provided the money.  The Lender will want to make sure that the extra money was a gift and not another loan that could compromise your ability to pay back the bank.