Do’s and Don’ts for Getting A Mortgage in Livermore Valley

Woman Balancing Her CheckbookAre you gearing up to buy a Livermore Valley home? Congratulations! Home prices and mortgage rates are both expected to continue rising, so now is the most affordable time to buy a home. As your Livermore Valley real estate agent, it’s my promise that I will be there every step of the way, to answer questions and to help you find the Livermore Valley home of your dreams.

Before you buy a home, you first need to qualify for a mortgage. Most of today’s home sellers won’t even consider a buyer who isn’t pre-approved. When it comes to qualifying for a mortgage loan, and getting the lowest rate possible, it’s important that you have a good credit score and a large down payment. At least, that’s ideal.

There are certain steps you should take to improve your chances of getting a low mortgage rate. First, let’s talking about what you should do during the mortgage process:

  • Do pay down or pay off your existing credit cards
  • Do continue using the credit cards, but pay them off when you do
  • Do stay at your current job until after a closing is complete
  • Do save up as much as possible for a down payment
  • Do let your lender know if any information you’ve provided changes
  • Do check your credit report for errors

Now that you know what you should do, here’s what you shouldn’t do during the mortgage process:

  • Don’t open any new credit cards
  • Don’t close any existing credit cards
  • Don’t make any large purchases until after a closing is complete
  • Don’t leave your job until after a closing is complete
  • Don’t pay off collections of charge-offs at this time
  • Don’t cosign on any other loan at this time

This is just the tip of the iceberg when it comes to mortgage tips. It’s a tricky process, but the lower the rate you get, the less your monthly mortgage payments will be, so it’s worth trying to get the best!

If you don’t have a large down payment saved, consider moving in with a family member or friend, or getting a roommate, to save on rent. Consider getting a second job as a means of a second income you could save up. Also, cut back on lifestyle expenses, such as fancy coffees and dining out. Find cheap or free events happening around Livermore Valley. There are plenty!

Once you’ve got a good credit score and a good down payment, apply for a mortgage. Of course, there are ways around this, too. There are mortgage options for those of you who want to buy now, even with bad credit.

Have questions? Ready to buy a Livermore Valley home? Contact me, your Livermore Valley real estate agent! I’m ready to help you achieve your dreams!

John Kurtzer
Your Livermore Real Estate Expert
RE/MAX Accord

Livermore Real Estate
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