Do’s and Don’ts When Applying for a Mortgage for your Wellesley MA home
Check out these helpful tips from Brian Koss of Mortgage Network, a nationwide lender and the largest independent mortgage company headquartered in New England. Some of these are surprising!
1. Do Stay Current on Existing Accounts. One 30 day late payments on your mortgage, car or credit card could lower your credit score 30-75 points!
2. Do continue to use your credit as you normally would. Diverting from your normal spending patterns can trigger a red flag.
3. Do call your loan consultant with any questions or concerns.
1. Don’t apply for new credit of any kind or establish new lines of credit for furniture, appliances, computers, etc. If you do, that company will pull your credit which may lower your credit score. Just ignore those tantalizing invitations for 10% off, free merchandise,etc. when making a purchase.
2. Don’t pay off collections or charge-offs. Check with your loan consultant first!
3. Don’t max out or over charge existing cards. Running your monthly balance could bring your score down by 100 points overnight! A good rule of thumb is to keep the cards at 30% of the available limit.
4. Don’t consolidate debt to one or two cards. Who knew? Changing your ratio of debt to available credit affects your score too.
5. Don’t close credit card accounts. This seems counterintuitive. Wait until your mortgage has closed.
6. Don’t raise red flags to the underwriter. Don’t co-sign a loan. Don’t change your name and address.
7. Don’t change your asset picture. Don’t change investments: no opening, closing, or moving investments without speaking with your loan consultant.
8. Don’t make large unexplainable deposits into bank accounts. (We should all have such problems!)
9. Don’t make changes with your employment or income. Employment stability is a big factor in the underwriting loan process. Even changing positions within your company may send us a red flag. Contact your loan consultant if there are any changes to your job, position or income.
If you are looking for real estate in Wellesley MA or any of the surrounding communities, please call jane Neilson, Realtor at Pinnacle Residential Properties in wellesley. She can be reached at 781-223–7338.