PREPARING FOR YOUR MORTGAGE
Below are a few things you can do to qualify for the best mortgage
products and interest rates available.
Check your credit: One of the first things you want to do is to check your credit. You
can do this free of charge at www.annualcreditreport.com. If you find errors on your credit
report, you will want to dispute those immediately with the appropriate credit bureau. You
can find their contact information here. Erroneous information on a credit report is very
common, yet can be quite costly. It can affect what type of programs, as well as the interest
rate you will qualify for.
Employment: Having a stable job history is very important. Don't quit your job before
applying for a mortgage, if at all possible. Also, if you have gaps in your job history, your
lender may ask for a letter explaining them. For self-employed borrower's, most lenders
want to see that you've owned your business for at least 2 years, and have a steady
income. All borrowers may be asked to provided W-2s, pay stubs, and tax returns when
applying for a mortgage, depending on the program you apply for, so be prepared to have
those items ready.
Reserves: A very important component to getting the best interest rate is the money
you have saved. Your "reserves" includes savings, checkings, CD's, 401K's, stocks, bonds,
etc. Many programs require that you have a minimum of 2 months of total house payments
saved. Lenders continue to tighten their requirements, and you will want to have as much
saved as possible. If you know you are going to be applying for a mortgage anytime soon,
start building your reserves up. It's never too early to start.
Debt: Before applying for a mortgage, start paying off your other debt. The
debt-to-income ratio is extremely important for qualifying for the best mortgage products.
Start paying off your credit cards and other debt that appear on your credit report. Having
too much debt is a great way to ensure that you won't qualify for a mortgage.
Credit: This one is probably the most important. Your credit report and score tell the
lender how credit worthy you are. Here are a few simple ideas to make sure your credit
score is strong.
1. Never be late on any of your payments, most importantly your mortgage, followed by
installment loans, such as your automobile, and finally your revolving credit, which would
include credit cards. Not only does making timely payments help your score, it also helps you
avoid late fees.
2. Try to keep your credit balances on your cards at least below 50% of your limit. If your
card has a $1000 limit, try to not let your balance go over $500, even if you are paying your
card off in full each month.
3. Make sure if you are planning on closing any credit card accounts, close the ones you
opened most recently. Keep the ones you've had opened the longest, even if you aren't
using them.
4. Make sure any tax liens or judgements that are on your report are taken off if they aren't
yours, or make arrangements to pay them off if they are. These can adversely affect your
score and the lenders will most likely require you to pay them off anyway.
5. Avoid applying for several credit cards at one time. Multiple credit pulls in a short time may
have a negative impact on your score as well. If you currently have bad credit and can't get
approved for a credit card, you may want to try starting with a secured credit card first. After
a few months of good payment history, you should have no problem getting approved for a
regular card.
6. While a lot of people have too much available credit, others mistakenly avoid all credit
cards and don't have enough credit. If you plan on ever applying for a mortgage, you will
want to start building your credit well in advance of your application. Credit cards can be a
great way of building your credit. An installment loan is also great credit builder, such as an
automobile loan.
Call Park Lane Mortgage today, and let's achieve your mortgage goals together!
*The material on this page is provided for personal, non-commercial, educational and informational
purposes only and does not constitute a recommendation or endorsement with respect to any company
or product. Park Lane Mortgage, Inc. makes no representations and specifically disclaims all warranties,
express, implied or statutory, regarding the accuracy, timeliness, and completeness, for any particular
purpose of any material contained on this page. You should seek the advice of a professional regarding
your particular situation.
Below are a few things you can do to qualify for the best mortgage
products and interest rates available.
Check your credit: One of the first things you want to do is to check your credit. You
can do this free of charge at www.annualcreditreport.com. If you find errors on your credit
report, you will want to dispute those immediately with the appropriate credit bureau. You
can find their contact information here. Erroneous information on a credit report is very
common, yet can be quite costly. It can affect what type of programs, as well as the interest
rate you will qualify for.
Employment: Having a stable job history is very important. Don't quit your job before
applying for a mortgage, if at all possible. Also, if you have gaps in your job history, your
lender may ask for a letter explaining them. For self-employed borrower's, most lenders
want to see that you've owned your business for at least 2 years, and have a steady
income. All borrowers may be asked to provided W-2s, pay stubs, and tax returns when
applying for a mortgage, depending on the program you apply for, so be prepared to have
those items ready.
Reserves: A very important component to getting the best interest rate is the money
you have saved. Your "reserves" includes savings, checkings, CD's, 401K's, stocks, bonds,
etc. Many programs require that you have a minimum of 2 months of total house payments
saved. Lenders continue to tighten their requirements, and you will want to have as much
saved as possible. If you know you are going to be applying for a mortgage anytime soon,
start building your reserves up. It's never too early to start.
Debt: Before applying for a mortgage, start paying off your other debt. The
debt-to-income ratio is extremely important for qualifying for the best mortgage products.
Start paying off your credit cards and other debt that appear on your credit report. Having
too much debt is a great way to ensure that you won't qualify for a mortgage.
Credit: This one is probably the most important. Your credit report and score tell the
lender how credit worthy you are. Here are a few simple ideas to make sure your credit
score is strong.
1. Never be late on any of your payments, most importantly your mortgage, followed by
installment loans, such as your automobile, and finally your revolving credit, which would
include credit cards. Not only does making timely payments help your score, it also helps you
avoid late fees.
2. Try to keep your credit balances on your cards at least below 50% of your limit. If your
card has a $1000 limit, try to not let your balance go over $500, even if you are paying your
card off in full each month.
3. Make sure if you are planning on closing any credit card accounts, close the ones you
opened most recently. Keep the ones you've had opened the longest, even if you aren't
using them.
4. Make sure any tax liens or judgements that are on your report are taken off if they aren't
yours, or make arrangements to pay them off if they are. These can adversely affect your
score and the lenders will most likely require you to pay them off anyway.
5. Avoid applying for several credit cards at one time. Multiple credit pulls in a short time may
have a negative impact on your score as well. If you currently have bad credit and can't get
approved for a credit card, you may want to try starting with a secured credit card first. After
a few months of good payment history, you should have no problem getting approved for a
regular card.
6. While a lot of people have too much available credit, others mistakenly avoid all credit
cards and don't have enough credit. If you plan on ever applying for a mortgage, you will
want to start building your credit well in advance of your application. Credit cards can be a
great way of building your credit. An installment loan is also great credit builder, such as an
automobile loan.
Call Park Lane Mortgage today, and let's achieve your mortgage goals together!
*The material on this page is provided for personal, non-commercial, educational and informational
purposes only and does not constitute a recommendation or endorsement with respect to any company
or product. Park Lane Mortgage, Inc. makes no representations and specifically disclaims all warranties,
express, implied or statutory, regarding the accuracy, timeliness, and completeness, for any particular
purpose of any material contained on this page. You should seek the advice of a professional regarding
your particular situation.
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Park Lane Mortgage, Inc.
Mount Dora, FL 32757
Ph: (352) 551-3431
Fax: (407) 792-4426
info@parklanemortgage.com
Mount Dora, FL 32757
Ph: (352) 551-3431
Fax: (407) 792-4426
info@parklanemortgage.com
©2007-2008 Park Lane Mortgage, Inc.