Mortgage Qualification

Published on May 13th, 2015

Trying for a Mortgage? Here are 7 Tips to get you ready for Mortgage Qualification

Deciding on that new home is a huge decision and one that comes with great responsibility. Applying for a mortgage can be a little bit scary and many people feel overwhelmed at first. But if you stick to these tips, you may have all the tools you need to qualify and come out on top!

1. Credit=Low: ​Before trying to qualify for a mortgage, make sure those credit cards don’t have a massive balance on them! Work on paying them off and make it a habit not to buy things you cannot afford with a credit card. A great tip to live by is to keep the balance below 50%.

2. Ask Some Questions! Don’t be afraid to ask some questions and do a little research. Talk to mortgage professionals beforehand, and reach out to friends and family. Figure out your budget options and do some research on the right loan, for you.

3. Get That Money Right: Prove your income is keeping your quality of life at more than “afloat.” 12 months proof of income is solid, but shoot for 24 months of consistency. Also, it’s not the best idea to have a career switch-up a year prior to a mortgage.

4. Documents Coming Your Way: There is no easy way to cut it—buying a house and getting a mortgage is going to involve paperwork. A lot of paperwork. What you need to bring to the table: pay stubs, W-2’s, tax information, bank statements, ID’s (two forms!), and more. Do some research on exactly what documentation your state requires.

5. The Make or Break - Credit Score: More than anything, have a grasp on your credit score. Get a service that allows you to monitor your credit score monthly, and look up guides to maintain good credit.

6. Not The Best Time to Buy a Boat: Explaining a big, lavish purchase while applying for your mortgage is hard. You don’t have to live a completely frugal life, but keep your purchases within the “normal” range for you. Don’t put money into your account at the last minute, either, as it will get flagged by the bank. Remember, banks will need months of statements for approval.

7. Stick To One Card: No need to apply for new credit. You may be tempted by a home improvement card or a 0% down card, but watch out: These can cause a big hit to your score. Depending on where you are applying, a new credit card can negatively affect your score for almost a year.

This may seem like a lot to consider, but if you follow these tips, you could be in the clear when it comes to approval time. Don’t take all these tips as gospel though, it’s best to start with speaking with a qualified mortgage professional. For more information about getting your first mortgage, please feel free to contact Housing Buzz today.

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