Once you’ve found your dream home in the City of Lakes, the next step—considering you’ve already been pre-approved—is submitting your mortgage application. Your Chetek WI lender will look at a variety of factors, including your income, your credit score, and how long you’ve been at your current job before giving the green light for your mortgage loan and allow you to purchase a home.
But that doesn’t mean you simply send in the documents and wait for approval. There are several quick and easy ways to end up with a rejected application and stall the buying process. As your local real estate experts, Six Lakes Realty has outlined four of these ways below in order for you to avoid them and keep your home purchase moving:
Opening a new credit card
One rule of thumb when planning to buy a home in Chetek—or anywhere, for that matter—is to avoid opening any new lines of credit. New credit applications can ding your credit score which is the last thing you should do when trying to obtain an approval from a lender. Even if your lender gives you a verbal affirmation that your application looks great, avoid opening a credit card until after the closing.
Keep in mind that mortgage lenders like to see at lease two years of consistent employment before approving your application. While it is not always your choice to change jobs, if you’re able to hold off until after your closing to make a career move, that is always best.
Not enough credit
It may seem contradictory, but using credit cards can help you on a mortgage application by establishing a credit history. Your credit history shows that you can manage debt and allows lenders insight into whether or not you pay your debts on time. While poor credit can put you in the red when trying to buy a home in Chetek, little or no credit can be just as detrimental.
Missing a bill
As I mentioned above, late payments can have a negative impact on your credit score and in turn, raise red flags to lenders. What’s worse, if you default on a bill, it could be turned over to a collection agency who will then notify credit bureaus of the outstanding debt. If you can pay in full, by all means do, but if you cannot, consider working with the debtor (whether it be a hospital or doctor’s office) on a payment plan.
Ready to begin the home purchase process? Give Six Lakes Realty a call today!
Six Lakes Realty
Office: (715) 924-4806