Build Your Best Financial History
Do This Before You Apply For A Mortgage
Review all aspects of your credit history. Deal with any past issues ahead of time to get them resolved now. Have logical and sensible explanations for any issues that can't be corrected.
Always be truthful, but put yourself in the underwriter's position. If the explanation doesn't make sense to you, it probably won't fly with the underwriter.
Once the mortgage application has been submitted, it's difficult and sometimes impossible to go back and rectify issues that surface during the process. Since this can result in unexpected delays and possible loan denial, it's always better to deal with these issues upfront.
Review any unresolvable credit issues with a loan officer if you are unsure of the implications. There may be a solution you are unaware of or an explanation that might be satisfactory to mitigate a loan denial.
Involving an experienced loan officer at this point, can save time and frustration since they have seen most issues and have probably dealt with your exact problem before.
Don't assume your circumstances will be automatic cause for a loan denial.
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Now is the time for a reality check, but can you improve your history? The answer in short, is "yes".
Don't neglect employment history, as it ranks as high as credit. Get the dates down, as job longevity as well as promotions, bonuses and history of overtime, can all play a big roll.
Raise credit scores by paying off or paying down on auto, student loan and credit card debts.
Choose the ones that will have the most impact, raise your credit scores and lower your debt-to-income ratio, so you can qualify for a larger loan, a better rate and lower down payment.