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Mortgage Tips to Avoid Problems & Delay

1. Know your credit!! The higher the credit score, the better loan program that will be offered to you. Request a free copy of your credit report prior to house hunting. Check it for accuracy. Dispute any inaccurate information. Judgements and collection accounts will need to be paid prior to closing on a home. Late payments will need to be brought current. Your credit does not need to be "perfect" to get a mortgage, but the better your credit looks, the easier the process will be for you.
2. Be realistic. If you are struggling to pay your $500.00 a month rent payment along with your other bills, you will probably struggle to pay a mortgage payment. Ask yourself, can you really afford this payment.
3. Although there are several different 100% programs out there, generally the rate is better the more money you put down. Even with 100% programs, your normally have to pay for a credit report, appraisal and your first year of homeowners insurance up-front. This can run between $700.00 and $1000.00. Start saving.
4. Banks generally ask for paystubs, the last two months bank statements, and the last 2 years W-2's. We may not need this information from you, but be prepared to send it to your lender if it is requested.
5. Call ERA Mortgage 888-253-5345 for a same day loan pre-approval.
6. Find an experienced Real Estate Agent to work with. These agents will arrange to show you ANY home you want to see, and negotiate the contract for you, when you find your perfect home-and it costs you NOTHING. They work for you!
7. Once approved do NOT take on any additional debt. Do not buy a car before you close on your new home. Do not run up your credit card debt. Pay your bills ON TIME. You were approved on the date you applied, and any changes to your financial situation or a new negative item on your credit report may cause you to not be approved after you find the house.
8. We have to verify the money in your bank accounts. Gifts from family members are normally acceptable, but we will need a gift letter from them, as well as be able to trace where the money came from. We will always ask for an explanation for large deposits, make sure you can document where money came from.
9. Once again, your approval was based on the information you provided us on the day you applied. DO NOT QUIT YOUR JOB. If you get laid off, notify your loan officer immediately. We will verify your employment on the day of closing.
10. Send requested information to your lender as soon as possible. We may require additional documentation once we review what you send to us, so don't wait until the last minute, it WILL delay closing.