Mortgage Mistakes
Here are some mistakes to avoid if you are planning on refinancing your current mortgage or looking to finance a new home.

Anything in this list should be avoided at all costs to ensure your credit score is as high as possible and that you don’t run into any qualification problems when it comes time to get that new mortgage:

1. Avoid Bankruptcy and foreclosure.
2. Avoid mortgage lates.
3. Avoid listing your property on the MLS and then attempting to refinance that same property within a year.
4. Avoid charge offs and collections, especially medical collections (Almost everyone has one, and they can easily be removed. They kill your FICO score!)

5. Avoid credit counseling. (This will significantly drop your credit score, and many lenders won’t lend to borrowers who have used these services.)

6. Avoid opening new credit cards or making excessive charges before and during the loan application process.
7. Avoid attempting to get a mortgage with less than 2 years consecutive employment in the same occupation or field. Unless you are were in School for that same field.

8. Avoid attempting to get a mortgage without having your assets in the bank that cover at least two months of your proposed mortgage payment including taxes and insurance.

*The last four on this list pertain especially to first-time homebuyers. First-time homebuyers usually always have to verify assets, housing history, employment, and credit depth. Sure you might get a lender to give you a mortgage, but your interest rate will be less than desirable!

If you think you’ve got better mortgage no-nos, or feel I could add some to this list, please feel free to contact me and I will add them. The more tips we’ve got, the more money we save people.

 

Michael Most
Branch Manager
Wells Fargo Residential Home Division
4045 75th Street, Elmhurst,  NY  11373
(718)475-5999 Tel
(866)549-4888 Fax
michael.most@rhdloans.com
Website: www.mmostloans.com