Now is a great time to purchase a Lakeland new home, and if you are going to be taking out a mortgage, you may be wondering what can affect you chances of obtaining approval.\n\nThe holidays are coming up and we know you want to make them terrific for your loved ones, but one of the easiest ways to hurt your credit score and mortgage approval is to overcharge your credit cards. Keep your end goal (getting a home) in mind — after all, this is a gift that your family can enjoy for many years to come — and DON’T max out your cards!\n\nWhen a lender is reviewing your mortgage application, they check your FICO scores to determine whether your financial history shows your ability to pay a mortgage. In part, you FICO score is determined by how the spending limit on each of your credit cards compares to the available balance of that card. Generally, you want the balance to be 30% or less of your credit limit for it to have a positive effect on your score. Charging up your card and carrying a high balance can often hurt your FICO score by up to 50 points! The lower your score the higher a risk you present to your mortgage lender, and if you max out your credit cards then you could negatively affect your chances of being approved for a mortgage. To avoid this, always make sure you know what your available balance is and always make your payments on time.\n\nOur other tips of what NOT to do after applying for a mortgage:\n
Do not take on any new debt without your lender’s approval as this could affect your debt-to-income ratios, which your lender looks at to determine your home affordability, and could also affect your credit score.
Do not take out a car loan or any other type of loan, or co-sign on a loan for someone else.
Do not change jobs, unless you have discussed this with your lender first. It may be a better job for more money, but lenders look at job history and stability, so at the very least this may delay your closing.
Pay your bills on time! We know you are saving for your new home, but even one late payment could affect your mortgage approval.
Location, home designs, features and prices are subject to change without notice. We are pledged to the letter and spirit of the U.S. policy for the achievment of equal housing opportunity throughout the Nation. We encourage and support an affirmative marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin.