Mortgage applications can seem kind of like an impenetrable black box. You input a bunch of information, including a social security number, and then based on all of that you’re magically approved. Or not.
While it’s difficult to move the needle drastically from one side of the spectrum to the other, there are a few things you should watch out for if you even think you might be on the bubble:
Your debt-to-income ratio will be a key piece of the mortgage approval process. If you start racking up credit card debt (or even open a brand new line of credit) the mortgage company may see that as an indication you’re planning to increase your total debt obligations.
While one or two inquiries may not hurt your credit score, numerous credit inquiries will. And even worse? When each lender pulls your report, they can see a list of the other banks you’ve already applied to. Serial shopping can send a bad message about your credit-worthiness and about your intent to actually do business.
Instead, opt for checking your credit score yourself through the bureaus, or free credit scoring sites. You should be able to give the score to a potential lender who can, in turn, give you an estimate of your interest rate and loan terms.
Are online loan applications easy to do at 1:00 am? Yes. However, there’s never a moment during which you can be face to face with a real, live person. If you want to be able to look your mortgage banker in the eye and ensure they are getting to know the real you, then you’ll want someone local. Even better, you’ll want a local company you can trust.
Contact our team at Midland Mortgage today to talk more about mortgage applications, the process, and any other questions you may have.