Top 10 Tips for Home Buyers to Beware of Before and During their Loan Process with Today’s Lending

        1. Before applying for a loan pay all your bills on time. Bills that are reported to credit bureaus take priority. Paying bills on time will create a positive history and increase your credit score rating.
        2. Before and during your loan do not apply or open any new credit cards, car loans, debt or lines of credit. This will for a period of time decrease your credit
score.
        3. Before and during your process save as much money as possible. Try even paying your minimum payment due on each bill. Don’t try paying off your credit cards when you are in the processing stages of a loan. This allows you to save more for your down payment. Use cash to make purchases while getting qualified.
       4. Prior to and during your loan process do not cancel any credit cards or lines of credit. Canceling open lines of credit or credit cards can lower your credit score rating especially if it is one with a history of being paid on time.
       5. Before and during the process keep your credit cards, auto loans, school loans at fifty percent or below their available limits. When limits are maxed out or have no room it burdens your credit score rating. This implies to the credit bureaus that your income isn’t covering your monthly bills and therefore you need to charge.
       6. Before getting approved seek out a lender who will help you find a grant or assistance that you may qualify for to receive a down payment. Many cities and states offer grants or loans.
       7. Before getting approved find a lender who has a variety or products. No Down Payment Programs do still exist. Find a lender who knows what they are and the locations the homes need to be in.
       8. Before getting approved ask parents, grandparents, aunts or uncles for your inheritance now. I know this sounds morbid, but if they wait until they pass you may be taxed on your inheritance. You can use gift money as a down payment with most loan programs. You may only need 3.5% of the purchase price for the down payment.
      9. Before you get approved consider a 2 or 3 unit home as an option to buy. If you need more income this can be a great way to increase your chances on an approval. Most loan programs will allow you to count a portion of your future rented apartment income to help you get qualified.
      10. Before deciding on a lender seek out a trusted company or referral with many loan program choices. Most mortgage companies offer a variety of lenders. They most likely can even choose from local lender to fit you into several optional loan programs. All rates are controlled by the Federal Reserve. If you trust your lender that is key to a safe loan program with great rates for your specific needs.