It’s surely a dream for most families who decide to buy a Flower Mound home; that being said, it would be tragic to have your heart set on that special home that’s perfect for your family, warm, inviting and elegant, only to have your loan application turned down!
The real estate market is currently in an upswing; people are buying homes again, and the time is perfect thanks to low interest rates. However, there are some things you could do unknowingly that could sabotage your ability to secure a home loan, which would be heartbreaking! So, how can you give yourself the very best chance of getting that low interest home loan? Here are a few tips.
- Keep your current job. Demonstrating that you’re bringing in an income and are secure in your employment is important. This is not the time to start your own business or change jobs. Stay put until after the loan goes through and you have purchased your home.
- Don’t open new lines of credit. The prospect of a new credit card is very enticing for most people, but no matter how attractive it seems, don’t do it while in the process of trying to get your home loan approved.
- Wait to purchase that new car you’ve been wanting. Wouldn’t it be great to buy a new home AND a new car? Sure, but it isn’t to your advantage to buy a new car – or even test drive one for that matter – when you are applying for a home loan. The more people who run a credit check on you, the lower your credit score may be as a substantial number of inquiries could possibly lower your credit score.
- Pay your bills on time. Pay them before they’re due, or by the due date – but don’t pay slow, and avoid any disputes when possible. Your bank may get the impression that if you can’t pay your bills, you couldn’t possibly pay your mortgage on time.
- Leave your bank accounts alone. If you have more than one account, avoid transferring large amounts of money between them or making large deposits. Any large or random deposits into your bank account may send up red flags, in which case you may be required to complete paperwork to document the deposit.
At Team Nelson, we look forward to helping you find your dream home – but most of all, we want to help make sure your efforts to obtain a home loan at the lowest possible interest rates aren’t dashed inadvertently. Keep these tips in mind when applying for a loan, and count on us for your Flower Mound real estate needs!