The best way to obtain an affordable residential mortgage is to stay informed about the mortgage industry, explains Bankrate. This includes understanding how to maintain a strong credit profile, saving money for a down payment, and maintaining finances during the mortgage application process.Continue Reading
Prior to the purchase or refinance of a home, borrowers should not change their credit obligations between closing and preapproval, states Bankrate. Borrowers who apply for new financing during the mortgage approval process may hurt their credit score. Applying for new financing or closing accounts, such as credit cards or auto loans, can result in mortgage lenders changing their initial offering rates.
Borrowers should avoid transferring funds during the mortgage approval process, claims Bankrate. Borrowers should not cash in certificates of deposit, move money from one account to another, or buy and sell stocks during mortgage qualification. Mortgage lenders want to know where borrowers receive their money, and moving money around creates problems for both borrowers and mortgage lenders. Organization is important for obtaining residential mortgages. Borrowers should obtain all of their financial documents for the two months prior to buying a house or refinancing existing mortgages, including bank statements, W-2s, tax returns and canceled rent checks.Learn more about Credit & Lending