Many people overlook the importance of planning the mortgage process, and it causes them lots of pain and inconvenience.
The mortgage remains the most popular source of financing for homeownership in Utah. Low-interest rates and friendly repayment terms are some of the factors that make home loans appealing. Naturally, mortgage lenders would need to verify your creditworthiness before they can lend you the money. As such, you should tread carefully in the months leading up to your application process.
Keep all your appointments
While it might seem unrelated, skipping on a doctor’s appointment could ruin your chances of qualifying for a mortgage. To discourage truancy, most doctors impose a penalty on anyone who fails to show up. While the amount is small and negligible, many people fail to pay or ignore the penalty. If the doctor’s office sends the unpaid bill to a collection agency, it is likely to ding your credit score. Additionally, you will incur additional costs that come with the listing with a collection bureau process.
Pay all your credit card on time
An expert from Altius Mortgage Group says your credit score is indicative of your financial conduct, with lenders showing a marked inclination towards higher scores. Failing to pay your credit card bills in full and on time takes a toll on your score. A low credit score translates into expensive home loans if you are lucky to find a lender. For the best mortgage rates in Utah, you should keep your credit score higher than 700. Timely repayment of credit card debt inspires confidence in the eyes of the lender. If you consistently fail to remit your payment on time, you are likely to subject the banks to the same treatment.
Hold off making new purchases
The amount of debt you carry on your credit card also determines your eligibility for a mortgage. Too much debt might render you incapable of servicing your mortgage, leaving you in a tight spot. Do not apply for a new credit card either, as every check affects your credit score and might lead to a change in your mortgage eligibility.
While the mortgage is an attractive way to own a home, you should tread carefully when making an application. Proper planning is key to a productive and pain-free mortgage process.