When it comes to buying a house, a list of do's and don'ts can help you get off on the right foot especially if you plan to apply for a mortgage. Here are some basic dos and don'ts to help you stay on track with your home ownership plans.
● Do Pay Old Debts – The less debt you have, the easier it’s going to be to get a great mortgage. Paying down your debt as this is another area that a lender will look at if you don’t have a lot of capital to put down as collateral.
● Do Pay Off Early – If possible, don't ever make minimum payments. Adding a little extra every month to debt payments is a really good help when trying to get a mortgage in the future. This applies to existing mortgages as well. The quicker you can pay it off, the better.
● Do Show Evidence of Down Payment Savings – Though some loans will allow you to receive "gift funds" from a family member for your down payment, it is best to show you have acculated your own down-payment savings
Do This
● Do Pay Old Debts – The less debt you have, the easier it’s going to be to get a great mortgage. Paying down your debt as this is another area that a lender will look at if you don’t have a lot of capital to put down as collateral.● Do Pay Off Early – If possible, don't ever make minimum payments. Adding a little extra every month to debt payments is a really good help when trying to get a mortgage in the future. This applies to existing mortgages as well. The quicker you can pay it off, the better.
● Do Show Evidence of Down Payment Savings – Though some loans will allow you to receive "gift funds" from a family member for your down payment, it is best to show you have acculated your own down-payment savings
Don't Do That
● Don’t Miss Payments – If you currently have a mortgage or any other type of loan, make sure you always make the payments on time. Car payments, credit card payments, school loan payments... it doesn't matter what type of loan it is, you need to pay on time every time.
● Don’t Overextend – Many people like to live beyond their means – i.e. spend more than they make – but this can quickly lead to problems. When getting ready to apply for a mortgage, make a household budget and practice sticking to it for six months before you apply. Use a "cash-only" system so you are not buying anything on credit. By not overextending yourself financially, you can increase your chances of mortgage approval.
Want more mortgage advice? I have have a handful of trusted mortgage professionals that would be happy to discuss your options and create a plan to get you the best possible loan terms for your situation. Contact me now!
● Don’t Overextend – Many people like to live beyond their means – i.e. spend more than they make – but this can quickly lead to problems. When getting ready to apply for a mortgage, make a household budget and practice sticking to it for six months before you apply. Use a "cash-only" system so you are not buying anything on credit. By not overextending yourself financially, you can increase your chances of mortgage approval.
Want more mortgage advice? I have have a handful of trusted mortgage professionals that would be happy to discuss your options and create a plan to get you the best possible loan terms for your situation. Contact me now!
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