We all know that getting a mortgage is a major decision, with lots of steps involved. Our job is to guide and educate you about things you can do along the way to make the process go more smoothly. Protecting your credit score is critical when you’re in the process of buying a new home. Your rate and loan costs could be affected by even a slight change. Since getting a mortgage requires that you show your creditworthiness and financial stability, here are a few steps you can take to position yourself as a good candidate for a mortgage:
- Make sure you have access to recent:
- Pay stubs, W-2s and/or 1099s and tax return
- Bank statements
- Keep up on all your credit payments by making them on time and avoiding late payments on: vehicle, credit cards, utilities, student loans.
- When possible, pay off the total balance of credit cards instead of just making the minimum payment required.
- Speaking of credit – don’t apply for new credit, such as a new credit card, car loan, or financing for furniture or appliances. If you do, notify your Mortgage Originator as soon as possible so these debts can be verified and included in your loan review.
- Stay at your current job. Since reliable income is a big part of your qualification and stability is important to your creditworthiness, a change now can affect your credit score and delay your loan application. If you do change employment, notify your Mortgage Originator immediately. New income and employment will have to be verified for loan approval.
- Don’t liquidate funds (keep your investment funds invested)
Your credit report may be pulled several times throughout the course of processing your home loan, so keep the above advice in mind. And always be sure to inform your BankWest mortgage originator of any changes to your income, debts, purchases, or other financial matters.
These tips are a great start to getting you on the road to refinancing or purchasing a new home. Together we can keep the home financing process smooth and stress-free!
Equal Housing Lender.