Top Credit Dos and Don’ts During the Loan Process

Many are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home. However, the recent economic crisis has created even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.

- DO continue making your mortgage or rent payments - DO stay current on all existing accounts
- DO keep working at your current employer
- DO keep your same insurance company
- DO call us if you have any questions
- DON’T make a major purchase (cars, boats, jewelry, appliances, etc.)
- DON’T apply for new credit (even if you see “pre-approved”)
- DON’T open a new credit card
- DON’T transfer any balances from once account to another
- DON’T pay off charge offs or collections without a discussion with your lender first
- DON’T buy any furniture on credit
- DON’T close any credit card accounts
- DON’T change bank accounts
- DON’T max out or over charge on your credit card accounts
- DON’T consolidate your debt onto 1 or 2 credit cards
- DON’T take out a new loan
- DON’T finance any elective medical procedures
- DON’T payoff any loans or credit cards without discussing it with your lender first.
- DON'T loose contact with you mortgage broker and your real estate agent.
There are any number of things that could make your “pre-approved” mortgage become a “denied” mortgage. Don’t let this happen to you!

Purchasing a New Home.

Step 1: Get Your Finances in Order

Your credit reports are an ongoing look at how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you. If you haven't looked at your credit reports, you might be surprised at their contents, because errors are common.

Step 2: Get Familiar with the Mortgage Industry

Finding the right loan is crucial to your home buying success. We. can help you understand what is available to suit your needs. Their help and expertise will help you make an informed decision and they will guide you throughout the entire process.

Step 3: Get Pre-Approved for a Mortgage

Do you know how much house you can afford? Probably not ! Our Pre-approval gives you that competitive edge over other house hunters. Consider this scenario. A home seller gets two similar offers. One is accompanied by a letter from us that states she is pre-approved for a mortgage in the amount of the offer. The other has no supporting documents. Which offer do you think the seller will consider first?

Step 4: Determine Your Wants and Needs

Buying a home isn't as difficult as you might think, even if you're short on funds, but the process will go a lot smoother if you let us help you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.

Step 5: Learn to Work with Real Estate Agents

Real estate agents represent buyers, sellers, or both--and in some states they can work as neutral facilitators for either party. It's essential to understand agent duties and loyalties before you make that first phone call.