How to be mortgage ready

By on Jan 2, 2014

What is mortgage ready, you ask. It’s a term I like to use to say that all your ducks are in a row and you are bullet proof to all of the scrutiny you will be going under getting approved for your dream home.

The first thing is to make sure you have no outstanding collection accounts on your credit report. If you do, they must be paid off with a letter to that fact. Second is your bank statements and the deposits going into it. Believe it or not lenders care more about where your deposit money is coming from than ever before. Whenever you have a deposit you must show a source of that where that money came from, that’s called sourcing funds and is a major deal to lenders. If you are the type to make cash deposits than you will have to curtail that activity for a minimum of 60 days and only deposit money you can back up its source like direct deposit of a paycheck or a birthday gift from the parents. Third, but not last is having a good handle on all of your pertinent and recent paperwork like tax returns, paystubs, and bank statements. If you have these documents at your disposal than it will be a much less stressful transaction for you.

Either way, if you contact an experienced mortgage professional we can guide you down the right path from the beginning.

If you have any questions feel free to contact me.