As a homebuyer, you certainly would like to tread with caution when it comes to availing mortgage loans. We would like to do something that could spoil the chances of getting that coveted mortgage loan. It is a fact that vast majority of people out there cannot afford to buy home out of their funds and has to depend on loans from bank for giving a life to their dream. But in their zeal to get that mortgage loan many of us end up making mistake. It could cost dear and the dream of owning a home could come crashing down before it actually begins. These mistakes can be avoided provided you know the major points that one should keep in mind. Though there are many of them, we are sharing a few of them for the benefit of our readers.
Adding Up Debts
This is a common mistake that many of us make before applying for mortgage loan by mortgage companies in OKC. If you have a home in mind, you must stop adding to your debts at least one year before. Adding more to your debt kitty does not make any sense. This will damage the debt-to-income-ratio and your lender may reject your mortgage loan. They would like to ideally keep it somewhere below 40% while some may be willing to push it to around 43%. Anything above 40% is not comfortably looked at by lenders and they may consider such applicants as risky borrowers. If you are planning for a mortgage loan, you must try and close down the small debts that you may have by way of personal loans, credit cards and so on. This will help to bring down the debt-to-income ratio and the lenders will look at your mortgage loan application favorably.
Falling Behind On Bills
You must never fall behind on your bills at least 12 to 15 months before you apply for a mortgage loans. Any delayed or behind-schedule payments will impact your credit rating and credit score. This could damage the prospects of your mortgage loan quite a bit. Even delayed payments of mobile bills, utility bills, energy bills and other such regular commitments could push your credit rating down. You must learn to live within your means, more so before you are planning to go in for a big commitment like mortgage loans.
Forgetting To Check On Credit
Credit score is an important parameter for making decision about your mortgage in OKC. Lender will be able to find out if you are fiscally responsible. This will give them the comfort factor and you will be in a position to pay off the mortgage loan. This is a long term loan and therefore credit history is taken into account. Credit history is not built over a day or two and a good credit score indicates that you have been financially prudent for years at length. This gives the lenders that much more confidence.
Overshooting Credit Card Limit
Credit score can also be impacted if you overshoot your credit card limit. You must keep a close tab on credit utilization ratio. Your debt to credit ratio should be reasonable and ideally it should not exceed more than 35 to 40%. This means that you are not over-leveraging your credit limit and converting it into high cost debts
Focus Federal Credit Union Address: 420 NE 10th St, Oklahoma City, OK Phone: (405) 230-1328