I write a monthly column for a local publication regarding all things mortgage. As your TBH Mortgage Lender Sponsor, I share them here when complete. If you plan to buy a home, buy a lot, or build a house in the next year or two, it's worth the two minute read.
I am always available to answer any mortgage question you might have, though I find we usually talk hunting more than loans. I am currently working on several loans for our Green Screen Brethern and I would love to do the same for you.
Thanks,
Trey
512.203.5869
trey@treypowers.com
You Do Not Qualify for a Mortgage
I absolutely hate breaking that news to a family. Over the last month or two I have had a few situations where potential home buyers were shocked to learn they did not qualify for a home loan. These families are current home owners with high income and significant assets. So what went wrong and how can you be sure this never happens to you? Pay your bills on time and keep an eye on your credit!
Late payment on a mortgage. This is often a complete deal killer. If a homeowner has been sixty or more days late on a mortgage payment within the last twelve months, they will not be approved for a conforming loan – period. If thirty days late, it will be reported to the credit bureaus and your score will take a significant hit. While we naturally assume this happens to an individual in financial trouble, that is not always the case. It could be a glitch in a bill pay system or an oversight while gone on an extended vacation. Check your mortgage statements each month.
Credit Scores. There are any number of reasons your credit score could be significantly lower than you believe. And if in the low 600s or less, you will most likely not get a mortgage. Often a potential home buyer is completely unaware of negatives on their credit report. Have you ever battled your cell phone carrier or doctor’s office over a small charge you know you do not owe? Sometimes we have a tendency get stubborn and, based on principle, refuse to pay. Well, they can get just as stubborn by sending it to a collection agency and reporting such to the credit bureaus. Collections and late payments kill a credit score. CreditKarma.com is a good free resource to keep tabs on your credit.
The best advice I can give you is to develop an ongoing relationship with a mortgage lender you know, like and trust. Work with them months in advance of a possible purchase to gauge where you are and where you need to be. Consultations and preapprovals are free for most lenders.
I am always available to answer any mortgage question you might have, though I find we usually talk hunting more than loans. I am currently working on several loans for our Green Screen Brethern and I would love to do the same for you.
Thanks,
Trey
512.203.5869
trey@treypowers.com
You Do Not Qualify for a Mortgage
I absolutely hate breaking that news to a family. Over the last month or two I have had a few situations where potential home buyers were shocked to learn they did not qualify for a home loan. These families are current home owners with high income and significant assets. So what went wrong and how can you be sure this never happens to you? Pay your bills on time and keep an eye on your credit!
Late payment on a mortgage. This is often a complete deal killer. If a homeowner has been sixty or more days late on a mortgage payment within the last twelve months, they will not be approved for a conforming loan – period. If thirty days late, it will be reported to the credit bureaus and your score will take a significant hit. While we naturally assume this happens to an individual in financial trouble, that is not always the case. It could be a glitch in a bill pay system or an oversight while gone on an extended vacation. Check your mortgage statements each month.
Credit Scores. There are any number of reasons your credit score could be significantly lower than you believe. And if in the low 600s or less, you will most likely not get a mortgage. Often a potential home buyer is completely unaware of negatives on their credit report. Have you ever battled your cell phone carrier or doctor’s office over a small charge you know you do not owe? Sometimes we have a tendency get stubborn and, based on principle, refuse to pay. Well, they can get just as stubborn by sending it to a collection agency and reporting such to the credit bureaus. Collections and late payments kill a credit score. CreditKarma.com is a good free resource to keep tabs on your credit.
The best advice I can give you is to develop an ongoing relationship with a mortgage lender you know, like and trust. Work with them months in advance of a possible purchase to gauge where you are and where you need to be. Consultations and preapprovals are free for most lenders.
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