Don’t Make These Mistakes When You Want To Get A Home Loan!

Getting a home loan can be a challenging process, and a finicky one. Qualifying can be challenging and once a buyer gets approved, it can be surprisingly easy to derail the process. Here are some mistakes to be avoided:

Not Pre-Checking Credit24930836_S

Once a borrower makes his application for a mortgage, his fate is largely sealed. One way to increase the chance of qualifying for a home loan is for a borrower to check his credit before applying. That way, he can address any issues before they become problems for the lender.

Changing Jobs

Lenders judge borrowers on their ability to repay the loan. While a borrower’s credit rating is a good indicator of past performance, his current job and income provides some assurances that he can make his payments.

Changing jobs or losing a job interrupts the income, and can make a lender decide not to lend to that borrower.

Taking On New Debt

New debt can derail a mortgage in two ways. First, adding debt can lower credit scores from the inquiry that comes as well as worry lenders. Second, new debt increases monthly payments, which lower the amount that a borrower can take out on a home loan due to the limitations imposed by the lender’s debt to income ratio.

Fudging The Numbers

Some borrowers might be tempted to tweak some of the numbers on their mortgage applications to make them more attractive to the lender, but lying on a mortgage application is a very bad idea.

First, lenders investigate what gets entered and they’re likely to catch it. Second, it is also fraud and could leave the borrower subject to prosecution.

In general, people considering a home loan should remember the Hippocratic Oath that doctors take. Its message — do no harm — is a good rule of thumb for applying for a mortgage.

Applicants that keep their financial status the same throughout the process without making any changes are more likely to emerge at the end with their new home and their original loan.

Written by Dennis Frank – Kent Real Estate Agent – Call Now @ 253-561-1763

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Dennis Frank

At age 25, I became interested in real estate and began investing in housing! I quickly realized the many advantages of home ownership and bought my first house in Kent, WA. Since then, I developed a love and passion for real estate as a investor, landlord, and real estate agent! Now with over 15 years experience, I am committed to providing excellent customer service, with a strong work ethic, while conducting myself in an honest and professional manner. I am continually updating and increasing my real estate knowledge and skills through ongoing training and education. I have built long standing relationships with many of my customers and I will work hard to exceed your expectations! My goal is provide the best customer service in the business! I would love to represent you and look forward to working with you on your next real estate transaction!

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