Getting a Mortgage - Dos and Don'ts

By Gina LaBarbera

So you've established a great credit rating and are ready to visit a lending institution to see about getting pre-qualified for a mortgage. Here's a few tips for what to do or not do.
Do keep paying your credit card bills, by at least the minimum monthly amount. Be sure that your balance is at least 10 % less than your credit amount.

Don't make any major purchases before getting a mortgage. Even a pre-qualification is subject to change if you suddenly have more debt. It doesn't matter if you think you will have no problem paying off the new debt along with your new mortgage, if the banks see a new monthly payment for you they are going to want to re-think the mortgage amount they offered you. If you haven't yet been pre-qualified, realize that any debts you have make the mortgage you are eligible for that much lower. So if you've been eyeing up any few-thousand dollar items, other than a piece of real estate, forget about it. Wait until the mortgage negotiating is complete and the home is in your name. Then you can buy whatever you want. As long as you are still able to make your mortgage payments, it'll be none of the bank's business anymore.

Don't quite your job. Do keep the same shift at work. It is important that your income be secure. Any changes in the amount you are working will make it look unstable. Your lender is going to want to see your income tax statements. What they like to see is that you've had the same job for a couple of years. However, I do realize that better job opportunities do come along once in a while. If you change jobs to go to a better paying position, this probably won't have a negative impact on acquiring a mortgage. However, you will want to wait until you are past any trial or probationary period before applying for a mortgage. The banks might want to see a letter of intent from your employer to ensure that your new job is a permanent situation.

Do protect your credit. Take steps to protect yourself from ID theft. There are some new services being offered such as having a company monitor your credit information. If one of the major credit bureaus are contacted regarding a credit check on you, you can be notified. If it's for a credit application you didn't make, you can stop a fraudulent act before it happens. Also, inquire with your existing card as to what precautionary services they may offer. With ID theft becoming more and more prevalent, it's worth taking steps to prevent it from happening to you.

Gina Labarbera, competent and experienced Jacksonville Florida real estate agent. If you're looking for St. John's County FL real estate, or for a home anywhere in or near Jacksonville, Gina can help.
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