6 Keys to Ensure an Approved Home Mortgage

Qualifying for a mortgage might have been easier just a few years ago, but today’s tight lending standards help ensure borrowers have the financial ability to keep the homes they buy as long as they want to. If you’re applying for a mortgage today, here’s what you can do to ensure you quality:

1. Boost your credit score to 740 or higher. Though loans are available to borrowers with lower scores, with a FICIO score of 740 or higher you’ll get best interest rates and lowest down-payment requirement.
2. Provide your income. Lenders like to see consistent income over a period of two to five years. Of course, you’ll also need enough predictable income to handle your monthly loan payment, along with property taxes and insurance.
3. Flash the cash. The more down payment you invest in your home, the better risk you are considered by lenders. Lenders consider a 20% to 30% down payment ideal, with a solid emergency fund of four to six times monthly income. You may get a loan with less, but why not to go for the gold?
4. Minimize debt. Pay down credit cards and retire car loans debt, etc. to improve your debt-to-income ratio, leaving more room in your budget for mortgage debt.
5. Tell the truth. Your loan application information will be verified through the underwriting process. Remember, incomplete or false disclosures will simply derail lender confidence in you.
6. Avoid last-minute gaffes. Lenders will calculate your debt-to-income ratio at the beginning of the loan process. They’ll also pull your credit report justr before the settlement. Don’t change the picture by depleting cash resources, increasing debt or opening new credit accounts.

Call me if you have any questions: 443-527-4375

Five steps to improve your credit score

Strong credit affects many aspects of your daily life, including your ability to purchase a home. Looking to improve your credit score?

The Board of Governors of the Federal Reserve System offers five tips for doing so. Here is what they recommend:

1. Get copies of your credit report-then make sure information is correct. Go to www.annualcreditreport.com. This is the only authorized online source for a free credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every twelve months. You can also call 877-322-8228 to request Annual Credit Report.

2. Pay your bills on time. One of the most important things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you to pay on time, but be sure you have enough money in your account to avoid overdraft fees.

3. Understand how your credit score is determined. Your credit score is usually based on the answers to following questions:
• Do you pay your bills on time?
• What is your outstanding debt?
• How long is your credit history?
• Have you applied for new credit recently?
• How many and what types of credit accounts do you have?

To learn more about credit scoring, see the Federal Trade Commission’s website: Facts for consumers:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm

4. Learn the legal steps to take to improve your credit report. Read the Federal Trade Commission’s “Building a Better Credit Report” http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm
It has information on correcting errors in your report, tips on dealing with debt and avoid scams- and more.

5. Beware of credit - repair scams. Sometimes doing it yourself is the best way to repair your credit. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm It explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.

Do you have questions?
Call Tatyana Baytler
Phone: 443-527-4375