Getting a mortgage is never a walk in the park. It is a complex process, and a time consuming one where most people normally end up making very costly mistakes. As a mortgage broker, it is imperative upon you to educate your clients about some of the huge mistakes they may fall for so that life becomes easy both for you and your clients during the process of searching for the mortgage. Here are some of the mistakes they must avoid, especially in 2018:
Before you embark on the actual process, the client should know where they stand as far as their credit score is concerned. Bad credit score may present a lot of problems, and if this is known in good time, there are remediation measures that might be taken to make it easy for the client when sourcing for the mortgage.
Clients should be advised against the dangers of applying for new credit at the same time as the mortgage. This is because every application of new credit causes you to be seen as a greater credit risk, and if you make an application at the same time you are applying for a mortgage, your score may take a hit, and you may not be eligible for good rates.
It is important for your clients to have seasoned assets in their accounts for at least a couple of months before applying for the mortgage. Some borrowers have the habit of transferring money from a relative’s accounts the day prior to the application, but as usual, the paper trail will reveal otherwise, and this will jeopardize your chances of getting funds.
Steady employment and income is important for mortgage approval. An underwriter will want to see that you have steady and consistent income, and that you will maintain that in the foreseeable future. Applicants hopping from one job to another will thus find it very difficult to get approved, since they lack the element of consistency in their incomes.
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