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5 Things to Review before Starting Your Mortgage Application

5 Things to Review before Starting Your Mortgage Application

With mortgage applications, there is a secret recipe.

Signing a mortgage application

Mortgage applications need to have a combination of things going for them. When prospective homeowners think they are ready to start shopping for a house, they almost always have more preparation work to do than they think they will. Consider these tips to put your best foot forward on the application:

1. Know thyself.

Investigate your own credit reports before you apply for a mortgage, and do it way in advance so you have time to take corrective action if the news isn’t so good. Everyone whose credit will be taken into consideration for the mortgage needs to do this on an individual basis.

2. Boost your credit score.

Credit is an enormous part of your financial profile and lenders will want to see evidence of a strong credit background. Luckily, even if you don’t have the best credit history, there are things you can do to boost your credit score.

3. Be mindful of the timeline.

Giving yourself enough prep time to bay off outstanding balances in your accounts is essential. The housing market fluctuates frequently, so it can’t be too far before you want to apply for the mortgage.

4. Don’t make any big purchases.

If you are committed to shopping for a home in the current market, don’t put any other credit activity in the mix – don’t buy a car, for instance, or make other large investments at this time. Focus on the mortgage.

5. Use accountable accounting.

Many borrowers who feel nervous about their credit decide to close troublesome accounts. This doesn’t erase them from your credit report. If you have an account with unpaid balances, start working to pay them off in a timely way. Get those accounts down to a zero balance before you open any other accounts.

Click here to get more information about submitting the perfect mortgage application. The pros at Midland Mortgage are here to help you through the process.

Posted Jul 22, 2015 by Midland Mortgage Corporation