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Home Buyers Guide Mortgages & Financing

7 things to avoid once you apply for a mortgage

7 Things To Avoid After Applying for a Mortgage!

Congratulations! You’ve found a home to buy and have applied for a mortgage! You’re undoubtedly excited about the opportunity to decorate your new home.

But before you make any big purchases, move any money around, or make any big-time life changes, consult your loan officer. They will be able to tell you how your decision will impact your home loan. Following is a list of 7 things you shouldn’t do after applying for a mortgage! Some may seem obvious, but some may not!

1. Don’t make any large purchases like a new car or new furniture for your new home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios… higher ratios make for riskier loans… and sometimes qualified borrowers no longer qualify.

2. Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

3. Don’t change jobs or the way you are paid at your job! Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.Continue Reading

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Your FICO score and how it affects your mortgage

Your FICO score

Are you about to apply for a mortgage loan in order to buy a home? If so, you may be curious about your FICO credit score and how this might affect your financing.

Here’s a look at how FICO scores can affect your mortgage and ways that you can boost your score to ensure your mortgage application is approved.

What is a FICO Score?

The Fair Isaac Corporation (FICO) is the country’s leading producer of credit scoring information and the primary source most lenders will check to assess how much risk you present. FICO combines information from credit bureaus such as TransUnion, Experian and Equifax and produces a score ranging from 300 to 850. The the better your credit history, the higher your score, and the lower the risk you present to lenders.

In general, many lenders find scores above 670 as indicating good creditworthiness. Typically, the higher your score, the lower the risk and the more likely creditors are to lend to you. If you have a score below 620 or 630 you may find it challenging to get approved and below 580 it will be almost impossible.Continue Reading

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Are mortgage myths holding you back from buying a home?

Getting a mortgage might be more attainable than you originally believed.

A recent survey from Fannie Mae finds that a huge percentage of Americans are overestimating what it takes to secure a mortgage — and those misconceptions about mortgage qualifications could be holding people back from purchasing their dream home.

Fannie Mae’s survey aimed at exploring how well consumers understand the basic requirements for obtaining a mortgage. And what they found were a lot of misconceptions.

For example, the average consumer believes you need at lease a 10 percent down payment and a credit score of 650 to secure a mortgage — when, in reality, you only need a down payment of 3 percent and a credit score of 580 to qualify. Most consumers (a whopping 77 percent) aren’t even aware that low down payment mortgage programs exist.

The Takeaway: Don’t let your misconceptions about mortgages hold you back from buying your dream home. Getting a mortgage might be more attainable than you originally believed — even if you have a less-than-perfect credit score or a smaller down payment.

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Applying for a mortgage? Be prepared for these questions

Applying for a mortgage? Be prepared for these questions

When you apply for a mortgage, you expect your lender to have some questions. But the truth is, your lender is going to have a lot of questions — and if you know what to expect before you start the application process, all of those questions can feel a lot less jarring and invasive.

A recent article from Realtor.com outlined a variety of questions you should expect when applying for a mortgage, including:

  • What is your credit score? Your credit score will, in large part, determine the interest rate on your mortgage. Your lender will no doubt run your credit report in the process of getting you pre-qualified, but it’s a good idea to know what’s on your credit report before the lender does.
  • Do you have a sufficient credit history? Your credit score is important, but so is your credit history. Your lender wants to see a variety of credit types and a long history of on-time payments.
  • How much cash do you have on hand? Lenders want to know that you have enough cash on hand to cover your down payment, inspection, and closing costs. In order to show them you have enough cash, you’ll need to provide a variety of financial documentation, including bank or brokerage statements, and a break down of your assets.
  • How much debt do you have? Even if you have a lot of cash on hand, if you also have a lot of debt, it’s going to make a lender nervous. When you’re applying for a mortgage, your lender will need to see a breakdown of any and all debt, including credit card debt, student debt, and car loans, which will help them make a decision on your eligibility for a loan.

What does this mean for you? When you apply for a mortgage, part of the process involves answering a variety of personal financial questions — but if you know they’re coming (and prepare for them in advance), the process (and the questions!) will feel a lot less stressful.

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Russ Fortuno, Associate Broker

I'm a Southern Arizona native and Quail Creek resident. Whether you’re buying or selling a home in Quail Creek, you’ll experience unsurpassed service and professionalism at all stages of your real estate transaction. I welcome the opportunity to assist in your next home sale or purchase.
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Tierra Antigua Realty

18745 S. I-19 Frontage Rd., Ste. A105
Green Valley, AZ 85614
(520) 333-0446
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