16 Tips for Seeking Your Ideal MortgageFollow these 16 simple mortgage tips to avoid delays or problems
If you’re ready to buy your first house, a second home or an investment property, follow these 16 simple mortgage tips to avoid delays or problems with your application. Many of these tips may seem like common sense, the little overlooked steps can create the biggest barriers to qualifying for a mortgage and buying your California home.
Follow these 16 mortgage tips to have a better chance of landing your best California mortgage:
There will be plenty of things you can’t control, so take time now to organize the things you can.
1. Missing a payment
If you miss a payment on a bill for any reason, don’t worry. It isn’t the end of the world. You can still qualify for a mortgage. To prioritize, make sure you’re not missing payments on an existing mortgage or rent.
2. Credit Score
To show a lender that you can pay back your mortgage loan, pay all of your current bills on time. If you miss payments by 30 days or more, your credit score takes a hit and it raises the red flag for lenders like Go Prime Mortgage in California. A higher credit score can lower your interest rate and costs.
3. Save Money
Save money every month. Of all the mortgage tips to follow, this is important to demonstrate you have the discipline to save money and pay your mortgage. If you can show that you save money regularly, lenders will take your ability to handle your finances seriously. Saving will also help you with a down payment if your loan requires one.
4. Find a Great Lender
A good relationship with an independent mortgage lender like Zachery Adam of Go Prime Mortgage positions you as a serious buyer. Zachery can help you shop for the best mortgage product for your unique California home buying needs.
5. Review Credit Report
Before you apply for a mortgage, work on raising your credit score and paying off any debt. Each year you can obtain a free credit report from all three services: Equifax, Experian and TransUnion. Keep an eye out for mistakes or evidence of fraud, which can impact your credit score if you don’t take care of it.
6. Continue to Pay Debt
Since the interest rate on your mortgage will be lower than what you see with other types of loans, you may want to use the money you’ve saved for a down payment to pay off other things. If you can lower your down payment, you may have a mortgage payment each month, but the rate will be lower than other debt such as credit cards. The interest you pay on your mortgage is tax-deductible, which can help with your overall finances.
7. Apply Securely Online
Apply Securely Online for your mortgage before taking out a new credit card or accruing new debt, which can lower your credit score and affect your ability to get a mortgage. A lender will take a close look at your financial activities for several months when you apply for a mortgage.
8. Gather Paperwork
Gather together any paperwork and documentation you think you need when applying for a mortgage. Each mortgage application is a little different, but you can check our Document Checklist to get an idea of the documents you may need. If you do this early in the process, you’ll avoid missing anything important.
9. Be Honest
Be honest with all your information. While it sounds like common sense, it’s important to hear it again. Report your income and debts completely. Tell your lender about any financial problems you may have had in the past since it will show up in the process. If you’re honest, you’ll have a better chance of getting the best California mortgage without any surprises.
The other side of these 16 mortgage tips include things you should avoid.
These warnings can save you money and make it easier for your California mortgage to be approved. These 16 mortgage tips help first-time and experienced California home buyers alike.
10. Don’t buy a Car
Don’t prioritize other large purchases if you’re trying to buy a home. Buying big ticket items, like a car, can have a negative impact on your ability to buy a new home in the Bay Area. These large purchases will impact the amount of cash reserves for your down payment. Dipping into your credit will affect your credit score in the approval process.
11. Keep your Job
Don’t accept a new job in the months leading up to your mortgage application if at all possible. Lenders prefer to see a stable employment history and a stable income. If you can, wait until after you close on your new home to make a big career change. However, if the circumstances are beyond your control, you should still talk to a lender to find out more about your options.
12. Don’t Overpay
Don’t pay too much for a home. You want to avoid being house poor, so look for a house payment total that fits into your current budget. Just because you qualify for a large mortgage, it doesn’t mean you need to take the full amount. This is especially true if it stretches your monthly budget to the breaking point.
13. Get Pre-Qualified
Don’t start house hunting before you get preapproved for a mortgage. Getting pre-qualified does not guarantee that you’ll get a mortgage for the amount you want. On the other hand, a pre-approval process follows the same intense procedure as applying for the loan. Once you have pre-approval, you can make an offer on a house you want that fits your budget.
14. Don’t Open New Credit
Don’t make any changes to your credit card finances. Anything you do in the months before you apply for a mortgage attracts the attention of a lender. It sounds counter-intuitive but don’t pay off or cancel any of your credit cards. Don’t open new credit cards or transfer credit card balances. This may inadvertently affect your credit score negatively and will impact your mortgage process.
15. Don’t Assume
Don’t assume you have to settle for a standard mortgage. There are a number of mortgage products that will fit your California home buying needs. Your spending and saving habits, along with your general lifestyle, can all impact the mortgage choices you have. An independent mortgage lender like Zachery Adam of Go Prime Mortgage will listen to you and find the best mortgage product for your needs.
16. Read before you Sign
Once you make it to your closing, here’s one more piece of advice you may not hear. Never sign a blank page unless it says: “This page intentionally left blank.” A blank page can be filled in later and you’d never know. It can leave on the hook for things you didn’t agree to in the process.
The Advantage of an Independent Lender
An Independent California Mortgage Lender like Zachery Adam does not work for the banks. They underwrite most of their loans in-house. Independent lenders approve — and pre-approve — mortgages throughout California. Here are the top five reasons to talk to an independent California mortgage lender:
While a bank can offer many financial products for a wide range of customers, independent California mortgage lenders like Zachery only do mortgage loans. Zachery Adam of Go Prime Mortgage has the knowledge and experience to match you with the right mortgage with the best rates and terms for you.
Independent California mortgage lenders have been around for a long time, surviving the crash and thriving in the new market. Go Prime Mortgage was founded in in 2005. It’s a well-established company with the funding to find mortgage loans even for unusual mortgage applications.
Being independent means independent California mortgage lender Zachery Adam can move faster than big banks to approve mortgages and close loans. Go Prime Mortgage can close in less than 30 days. Our goal is to close on time, every time.
Independent California mortgage lenders like Zachery Adam work directly with you throughout the entire approval process. You’ll be in contact with your lender every step of the way making the entire mortgage approval process much more transparent.
When it comes to mortgages, a California mortgage lender can outmaneuver banks because they offer more types of loans, such as first-time VA loans and debt consolidation loans. Being a California mortgage lender, we have the expertise to find the right loan for you.
Enjoy a mortgage process built for the modern world.
Borrowers can easily complete a loan application, upload supporting documentation, eSign disclosures, and monitor the status of their loan — in a single, easy-to-use location. Apply Securely Online
Still have a question?
If you have more questions about our 16 mortgage tips or how to get the best mortgage, call Zachery at 831-226-1210 or send him your question online. Zachery is an expert and he loves sharing the best mortgage tips and matching people to their ideal loan product.
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