Preparation is key to getting the best mortgage loan.
Follow these five steps when preparing for your next loan.
The difference between a good loan and great loan can add up to thousands or even tens of thousands of dollars over time. Smart preparation now is key to getting a great mortgage loan for your future. Follow these proven do’s and don’ts to find the best mortgage loan possible.
1. SIGN UP FOR CREDIT MONITORING so that you can watch your credit. For a small fee, of about $15 per month, many companies offer monthly credit monitoring services to inform you of any new credit activity that could affect your scores. Credit monitoring also is especially helpful to detect the first signs of identity theft, and that’s something nearly everyone could use.
2. PAY BILLS ON TIME. Stay current on existing accounts and avoid any late bill payments. DON’T APPLY FOR NEW CREDIT! New credit inquiries can negatively impact scores. Depending on elements in your current credit report, a score can drop as much as 15 points for a single credit inquiry.
3. DON’T MAX OUT YOUR CREDIT CARDS. Use credit modestly during the loan process, and avoid major credit purchases. Balances exceeding 30 percent of the total available credit line can bring credit scores down. This includes transferring debt from one card to another, which will impact the total available credit per card.
4. DON’T CLOSE CREDIT ACCOUNTS. Closing a credit card will adjust the total amount of available credit, which will impact credit scores. Closing a card also can affect other score factors such as the length of your credit history.
5. DO STAY IN TOUCH WITH YOUR LOAN AND REAL ESTATE PROFESSIONALS. Consult your mortgage broker about whether a specific action can affect your credit reports or scores during the loan process.
Coast2Coast Mortgages Founder Walter Bianchi can help you analyze your credit, organize your documentation and prepare for the best mortgage to meet your needs now and in the future. Give him a call at 904.894.6037 or send him an email to see what you can do now to get the best mortgage.