Now is a great time to make sure your buyers are well prepared to go forward when making the decision to buy. A mortgage professional can be very helpful in ensuring they are on the right track. Here are some tips that will help your clients make the process go smoothly.
1. Review your credit. There are a lot of free credit report websites available to use, although these sites do not provide the same credit scores used in the mortgage industry, they provide excellent insight into your credit profile. Take a moment to review your credit to insure there are no surprises. It is vital that you make sure all your accounts are current and there are no late payments, charge off’s, etc. It is important you avoid making any new purchases on credit or opening any new credit lines and do not close any credit accounts even if paid in full.
2. Make sure you can verify your income. Small business owners, entrepreneurs, and other self-employed individuals are concerned about their ability to qualify; there has been a lot of miss information about lending requirements. Talk with your accountant about how you file and how to maximize your income for mortgage qualification. File your tax returns as early in the New Year as possible. Keep copies of invoices, contracts, and any other income documentation that arrives throughout the year so that you can create a mid-year snap shot of income since last tax filing. Meet with a trusted mortgage professional to review all options and maximize your mortgage potential.
3. Keep your money where it is. This is not the time to be shifting your money between accounts. When the mortgage lender reviews your loan, they are likely to need a paper trail documenting every transfer, withdrawal and deposit. Don’t create undue stress and complication with any unnecessary shuffling of funds.
4. Get educated. If this is your first home purchase, ask about first time homebuyer classes you can take. Some first time buyer programs require a homebuyer education class, learning about the process is never a bad way to start your house hunt.
As you know, the housing market is roaring back, make sure your buyers are ready when the time comes. Preparation and diligence are vital in ensuring a great home buying experience.