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Tips for Preparing to Get a Mortgage

1. Move money around as little as possible. Lenders require a paper trail and full statements. They want us to verify the source of all deposits that are usually larger than 25% of your gross pay. If you have a bunch of deposits they will add them up and then may ask for sources. Payroll deposits are not an issue. If there are large deposits we then may ask for the statement it came from, if there are large deposits on the new statement we will need to source them also. This is a general guideline and it may vary with different underwriters.
2. Bring 2 years tax returns even if you are paid w-2 income. All lenders will pull your tax transcripts, if there are any schedule c and or e income or loses your returns will be needed. By bringing your returns we will know in advance if they are needed or not.
3. Limit your credit pulls. When you get a mortgage a credit report will have to be pulled. When your credit is pulled it will lower your scores. In most cases a pull or 2 will not matter. The rate you get on your mortgage can be effected by your credit scores. We all want to pay the lowest rate we can get. Also your credit will sometimes be pulled right before you close on the mortgage, they do this to make sure you do not have any new debt. If they see a new pull it will need to be documented if new credit was established, if so we will need to get some information from the company that did the pull and sometimes this is not easy and can delay your mortgage.

It is a great time to buy, rates are low and values are down from there highs but beginning to appreciate again. This gives you more buying power now then you will have later in the year if rates go up as many are predicting.

 

Getting a Mortgage in Today’s World

Getting a Mortgage in today’s world. The good news is there are plenty of mortgages money available and a wide variety of products available with low rates. The documentation and details required in today’s mortgage market is the part that may try your patience. County Mortgage can help you navigate through the mortgage process. Ten years ago you could get a mortgage with out verifYing income. You could have bad credit and put no money down. Lending had very easy guidelines. At County Mortgage Services we did not originate many of these loans, but other lenders did. I said at the time that these loans would come back to hurt the mortgage market. The pendulum has swung way to the other side now, borrowers, lenders, banks, appraisers and all involved in the mortgage business have tighter guidelines with a lot more detail required. I think the pendulum will eventually settle in the middle with more relaxed common sense guidelines and documentation.