Get Your Mortgage Approved!

Of course, I’m all about mortgages – I’ve been doing them for a long time – and I absolutely know the things that can hinder you from getting the home mortgage you deserve!

So, below, I’ve listed 8 “Do not” rules that are a result of the tightening of guidelines in the market. Follow these rules, and you’ll get that mortgage (or get one refinanced) when you expect to! Here we go…

“Do Not” Rule 1:

Don’t go out and buy big-ticket items (cars, boats, etc.) that will affect your credit score. Lenders frown on too much debt since it makes you look like a greater credit risk in their eyes.

“Do Not” Rule 2:

Don’t quit your job or change to a new industry or become self-employed. Again, this says “big credit risk,” to lenders because it won’t look like you have job stability in your life.

So, for example, if you switch from, say, being a nurse to outside sales, you can bet an underwriter will frown on it.

“Do Not” Rule 3:

Don’t switch from a salaried job to a commissioned job. Again, for lenders, this is an issue of risk.

By nature, commissioned jobs are less reliable in producing income than salaried positions. Lenders will want to a minimum two-year history of success in a commissioned position.

“Do Not” Rule 4:

Don’t transfer large amounts of money between bank accounts. This can raise suspicions as to where the money originated.

If you have to do transfers, have a complete history of how they were transacted; that is, deposit slips…canceled checks…wire transfers… and two months’ documented history of how the money came to be in the account.

“Do Not” Rule 5:
Don’t forget to pay your bills! This may sound like an obvious rule, but people often forget or are late in making payments due to various factors in their lives. Lenders don’t like a history of non-payments or late payments.
And, even if you have a dispute with a company’s bill, I recommend you pay it and then resolve the problem after the fact so no history of non-payment shows up on your credit report.

“Do Not” Rule 6:
Definitely, definitely, don’t open new credit cards! This action will likely drop your credit score because it means you’re adding more debt – something that lenders really frown on in terms of granting mortgages.

“Do Not” Rule 7:
When you get a gift from a relative, document the deposit and don’t co-mingle that gift with other funds. If a parent or other relative wants to contribute gift money for a down payment, then you must be prepared to show where that money is coming from.

You must include the provision of investment account or bank statements. And gifts above $13,000 are taxable, according to Internal Revenue Service rules for 2010.

“Do Not” Rule 8:
Don’t make random, untrackable deposits that could be seller-induced expenses. So, be sure to document every deposit you make!

So, there you have it – eight “Do Not” rules to follow when applying for a mortgage. Of course, I can’t guarantee that you’ll get a mortgage; however, I can guarantee that the whole process will be made a whole lot easier and smoother than if you didn’t follow the rules!

If you want to learn more about today’s mortgage process (and I know you do), give me a call today at 402-301-4500 or contact me at terry@terrywilliams.com

P.S. It’s April 15th – get those taxes filed now!!!!!!