The 5 Most Common Mistakes That Can Hurt Your Home Mortgage Approval

Recently, President Obama put into action the Homeowner Affordability and Stability Plan to help Americans on the brink of foreclosure to receive the loan modifications they need to be able to stay in their home.  This could be the closest we get to a consumer bailout, but the money won’t be available to just anyone who applies.

Most Americans know that they should pay their bills on time to help their credit score, but there are many other factors that can dramatically affect your ability to get a loan.  Let’s take a look at the 5 most common credit mistakes:

1.  Maxing out your credit cards

Repayment ability is the main factor that lenders are looking at, which is essentially your debt-to-income ratio.  If you have a small amount of debt compared to your income, you’re in a much better position to pay off what you owe (quickly).  Before you apply for a home loan, try to avoid charging a lot on your credt cards, so that your balance stays low.  If you carry a balance month-to-month, try to pay them down as much as possible.

2. Buying a car on borrowed money

One of the biggest mistakes many families make is financing a car or other major purchase right before they apply for a mortgage.  Sometimes is can mean the difference between approval and denial.  Wait until after your loan has closed - not just been ‘approved’ - before you take out another loan.

3.  Procrastinating

When you’re looking to refinance an adjustable rate mortgage (ARM), don’t wait until crunch time.  Start preparing at least a year in advance.  Most homeowners wait until just 2-3 months before the expiration of their initial rate, and this can really limit the number of available options. 

4.  Reconciling old bad debt

If you have old charge offs or collections on your credit history, it might seem like a responsible idea to pay down or completely pay off these debts.  Unfortunately, by paying into this debt, your credit report adjusts it to ‘current debt’ which makes your credit problems seem more recent than they were.

5. Reaching out for help

Credit counselors will often give advice that is relevant for getting you out of debt, but typically neglect your ability to get new financing, including home mortgages.  Many times, a counselor will recommend closing healthy credit accounts to stop you from using them, but canceling these accounts is bad for your credit score.  Additionally, lenders don’t like to see that you are having difficulties handing your own finances, and having credit repair services on your record can send up a red flag.

To qualify for a certain type of home loan under the Homeowner Stability Initiative, you might have to sign up for HUD-certified debt counseling program, but otherwise you should stay away from credit counseling before applying for a home loan.  If you really have a spending problem, a better strategy is to put your credit cards where they aren’t easily accessible to you (like a safe deposit box), or even cut them up.  Keep the accounts open, and continue to pay down your balances and make your payments on time.

By avoiding these mistakes, you can help boost your credit score enough to qualify for lower rates, bigger loans, or both!

If you’d like a free consultation to get the best mortgage for your current financial position, drop us a line and we’ll help you out.

Worried about a Foreclosure? These Mortgage Tactics can Save Your Home…

Foreclosure can be a scary thing for a lot of families. It’s very important to uncover your options and know the alternatives. If you can halt your foreclosure, you can save yourself a lot of hassle, stress, and time. Let’s take a look at Ranju Kumar’s guide to stopping a home mortgage foreclosure.

Stop Foreclosure ~ Avoiding Foreclosure Tactics To Halt Loss of Your Home

Foreclosure. The word wherewithal home loss, upheaval and anguish. Over a few months, what you have worked so stubborn to attain can be taken away from you. It can cause stress, fighting and endless sleepless nights. Is there anything you can do if you face this predicament.

Unforeseen Events Can Lead To Foreclosure

Reaching foreclosure can come off a life changing event where you find you must not only deal with the event - of job, unforeseen hospital bills and all those individual conditions that can sometimes take center stage in your life. You may or may not have received a foreclosure notice, but you may be worried about it. This is totally understandable if you find you can’t make payments or at all of something that’s varied in your life.

Get A Clear Picture Of Your Situation

In order to get out of mental turmoil and get a clear picture of what is current in your life, you need to take specific action. CNN reported that in 2008 foreclosures spiked 112 percent with no end in sight. Failure to act can bring your fears into reality.

Build A Concrete Plan For Recovery

The best way to avoid foreclosure is to take concrete action before foreclosure happens arranging a solution former to that final option. In order to do this, you need to assess your situation, contact the proper people in order to get foreclosure stopped, come up with an alternative conception that you can present.

Look Into The Important Factors That Change The Equation

There are some important factors to consider when coming up with an alternative plan:

- What you need to do before you pick up the phone
- How to avoid the myriad of scams that will destroy any indetermination you might have
- What foreclosure assistance programs are available
- Who to contact and when
- Methods you can employ right now to avoid foreclosure
- Approved foreclosure counseling centers that can help you

Move From Fear Paralysis To Action

The way to avoid foreclosure is to put worry and fear aside is more than feasible if you move from paralysis about your latitude into action. Get a manual, handbook or checklist that will help you organize and build a concrete project for recovery from foreclosure.

Relevant Information Is Essential

Knowing whether the nation is on your side or not is important as well as your rights within the veracious estate marketplace. There is a lot of intimation online to help you already. Because foreclosure is such a in quantity national problem, all kinds of reputable organizations have sprung up to give you knowledge that will help you.

Action and Correct Information Will Make The Difference

Making a move and building a suggestion pre existing to the commencement of the foreclosure process is the key to elusive it. You have more rights than you think, and there are a number of anomalous ways for you to revive working with agencies instead of being trounced on by them. The key to touchdown is to get timely, relevant and effective data that will allow you to build a proposition of action.

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Ranju Kumar an editor of http://www.stoppingforeclosureguide.info is providing information to help those who are facing the prospects of mortgage foreclosure. Just check out his website and get to know more on how to avoid Foreclosures.

Thanks for writing, Ranju. We learned some valuable tips for avoiding foreclosures.

If you’re a reader who would like a personalized consultation to find out how you can avoid foreclosure on your home mortgage, drop us a line and we’d be happy to walk you through the process.

Want to Avoid Foreclosure? Here’s How…

Foreclosures can be a very real and intimidating challenge for families today. We’re featuring this excellent article about how to work your way out of back-payments and damaged credit. We hope you find this post very helpful if you’re at risk of foreclosing.

Foreclosure Process ~ Understanding The Options You Have To Avoid Foreclosure

The foreclosure process takes a lot of time and you do have options to avoid a foreclosure on your home. It will depend on if you want to keep your home or if you cannot afford it anymore.

If you are foreclosing on your home the process in states can take up to a year. With the cost-cutting today, some states are dispossession even longer than a year to foreclose on homes.

If you want to keep your home and worried you will lose your home quickly in a foreclosure you have missed a payment, relax. The process can take months and months. You usually have to be several payments before a bank will dawn the process. It is important to remember that if you do not want to lose your home but are having financial difficulties you must to the bank. Many people chicken out and are afraid to to the bank they are having financial problems and cannot afford to make the payment. The bank will work with you if you stay in palpation with them.

Be sure to be honest with the bank. If you want to keep your home and avoid the foreclosure process the bank may have some options for you. If you do not tell the bank you want to keep your home then you might lose it they didn’t know. If you don’t make payments to the bank and avoid the calls from the bank it looks as if you have given up on the loan. The bank will not proposition options to you. You have to ask the bank and tell them about your latitude and why you have missed a few payments. Many banks will allow a modification of the loan, a repayment plan, and other options so you can stay in your home.

If you don’t want to keep your home you are now in a financial latitude where you know you cannot afford it, you can still avoid the foreclosure process. No one wants a foreclosure on their credit scores. Many people are unable to afford their home due to an unexpected unemployment, illness, dissolution in the family, divorce, and more.

Conclusion

There are options for you to avoid the foreclosure process which include selling your home during the foreclosure process. Because the process takes so for ages it can’t hurt to put a sign up in the yard. It is much better to sell your home than it is to let it foreclose. Why not try. You can also give the medal caudal to the bank if you want to do a deed in lieu of foreclosure. That is an option. You can also sell your home for much at a disadvantage than what you owe the bank. This is called a short sale and needs to be praiseworthy by the bank. However, if you tell the bank you are trying to do a short sale they will most likely speed up the process of the foreclosure process.

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Don’t fall victim to foreclosure! Learn unique methods that will help you secure your financial future today. Get the Foreclosure Survival Handbook and discover how avoiding the foreclosure process can become a reality.
Please visit: http://www.homesforeclosurehelp.com

What a great article! If you’d like to speak to an expert that can help point you towards the light, one of our free services is a consultation to get you headed the right direction. For assistance today, just drop us a line.