Sierra Hills Homes-Realtor-Real Estate Placer Co Auburn Roseville Nevada Co Grass Valley CA

Planning ahead for a mortgage

Start with a comprehensive personal financial plan before buying a home. Since almost all mortgages are based on the same qualification information, a combination of income, monthly expenses and credit history, planning ahead can really help you avoid hassles.

Regarding gift funds for down payments: since lenders check only three months' bank statements, arrange to receive the funds and place them in your own bank account six months before mortgage application.

Unless you have a very high income, do not make any large purchases such as buying a new car or a new boat prior to applying for a mortgage.

Defer any purchases, particularly credit card or installment contract purchases, until after closing on your new home. Monthly credit card obligations can ruin your expense ratio very quickly.

If you currently own a home, make sure you do not have any late mortgage payments for 12 months prior to applying for your new mortgage. ALWAYS pay your mortgage first, even if your budget is tight.

Make sure tax liens and judgments are paid.

If you get into a credit dispute over a small sum, just pay it. Credit bureaus do make mistakes, but unfortunately the burden of proof is on you, not on them.

Do not believe that you can keep parts of your financial life secret from the lender. Do not quit your job or do something that will get you terminated if you can help it.

Check your own credit several months prior to even looking for a house. This will give you time to clear up any problems or misunderstandings!

Finally, don't authorize anyone except the "few" select Lenders you are shopping to make credit inquires. Those inquiries lower your FICO (Credit Rating) score!

NOLO Credit Scoring

NOLO Real Estate Calculators
Estimate how much a mortgage lender will approve your loan for; find out how much house you can qualify for, decide which type loan is best for you...and more

Realtor serving Placer County and Nevada County
Including Auburn, Meadow Vista, Weimar, Applegate, Colfax,
Christian Valley, Heather Glen, Grass Valley, Nevada City,
Granite Bay, Roseville, Rocklin, Loomis, Newcastle
-Member of the Placer and Nevada County Board of Realtors.


		Some Advice on Buying a Home... *Planning ahead for a mortgage* Start with a comprehensive personal financial plan before buying a home. Since almost all mortgages are based on the same qualification information, a combination of income, monthly expenses and credit history, planning ahead can really help you avoid hassles. Regarding gift funds for down payments: since lenders check only three months' bank statements, arrange to receive the funds and place them in your own bank account six months before mortgage application. Unless you have a very high income, do not make any large purchases such as buying a new car or a new boat prior to applying for a mortgage. Defer any purchases, particularly credit card or installment contract purchases, until after closing on your new home. Monthly credit card obligations can ruin your expense ratio very quickly. If you currently own a home, make sure you do not have any late mortgage payments for 12 months prior to applying for your new mortgage. ALWAYS pay your mortgage first, even if your budget is tight. Make sure tax liens and judgments are paid. If you get into a credit dispute over a small sum, just pay it. Credit bureaus do make mistakes, but unfortunately the burden of proof is on you, not on them. Do not believe that you can keep parts of your financial life secret from the lender. Do not quit your job or do something that will get you terminated if you can help it. Check your own credit several months prior to even looking for a house. This will give you time to clear up any problems or misunderstandings! Finally, don't authorize anyone except the "few" select Lenders you are shopping to make credit inquires. Those inquiries lower your FICO (Credit Rating) score! NOLO Credit Scoring NOLO Real Estate Calculators Estimate how much a mortgage lender will approve your loan for; find out how much house you can qualify for, decide which type loan is best for you...and more


Realtor serving Placer County and Nevada County Including Auburn, Meadow Vista, Weimar, Applegate, Colfax, Christian Valley, Heather Glen, Grass Valley, Nevada City, Granite Bay, Roseville, Rocklin, Loomis, Newcastle -Member of the Placer and Nevada County Board of Realtors.
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