Follow these tips to improve your odds of getting a mortgage application approved:
•Do not quit or change jobs.
•Do not make any large purchases.
•Do not have your credit pulled.
•Do not deposit large sums of money.
•Do not open, close or transfer asset accounts.
•Do not increase your credit balances.
•Do not stop making payments on anything.
•Do not start a home improvement project that would require a loan.
•Do not co-sign a loan for anyone.
•Do not fudge on any of the facts on your loan application.
Price – This is probably the most important element of the six items listed. A property needs to be properly priced to attract buyers in the first place. Pricing a home too high will most often lead to a lower sales price and longer market time than if priced right in the beginning.
Property Condition – Properties that are in tip top shape will usually sell much quicker than a property that’s in disrepair or needing updating. Properties that are in substandard condition will often draw low ball offers from investors and those folks looking for fixer uppers. Additionally a property that’s not up to certain minimum standards will not be considered for government backed loan programs, which significantly reduces the pool of available buyers if your limited to cash or conventional buyers.
Terms – This item rates high on the list of elements because if a buyer is unable to locate the needed financing, then they will not be in a position to purchase your property in the first place. If interest rates are at an attractive level and lending standards are reasonable, then terms should not be an issue. If you have a hard to sell property, then you might consider offering seller financing. This would open up your property to those buyers that are unable to secure traditional financing.
Agent Marketing – Selecting an agent and firm that has your best interest in mind is most important. You want someone that will provide you the necessary information, so that you can make informed decisions throughout the process of buying and selling. Visit www.KnoxSold.com to find out more about agent marketing.
Market Conditions – This is one of the elements that you have little to no control over. Market conditions will determine a property’s value at any given time based upon the law of supply and demand. The market is ever changing as the supply of available properties for sale rises and falls. Values will rise as the supply of available properties dwindles, and values will fall if the supply of properties exceeds buyer demands.
Property Location – Location greatly affects the value of a property. Property values are mostly influenced by neighboring property values. Usually you will find like valued properties in company with with one another. When pricing property you will usually need to be priced in relationship to other properties in the immediate area.
1. Make large undocumented bank deposits
2. Fail to disclose you are on probation, disability or maternity leave with your employer
3. Close credit accounts with a zero balance
4. Co-sign a loan for anyone else
5. Change your job status from full to part time
6. Spend your down payment or closing cost money
7. Apply for new loans or credit
8. Stop paying your bills on time
9. Get married or divorced
10. Quit your job
If you lost your home due to a foreclosure or short sale, you probably would like to own a home once again. The good news is that a number of guidelines have changed which may allow you an opportunity to buy a new home sooner than you think.
The traditional waiting period after a foreclosure is seven years. However; these waiting period guidelines may change and you would be best served to get up to date information from a qualified mortgage professional. Many lenders will shorten the waiting period some if there were extenuating circumstances surrounding the foreclosure of your home. Was there a death or illness that prevented you from earning enough money to meet your mortgage obligations? Did you loose your job or incur a substantial pay cut for some reason? These and similar reasons might be enough for a lender to shorten your waiting period after a foreclosure.
Your credit is often re-established quicker after a short sale than a foreclosure. Generally lenders will require only a two-year waiting period before they will consider you for another mortgage. Once again; seek the advice of a licensed mortgage professional to obtain the latest information on their qualifying guidelines.