How To Improve Your Odds of Securing a Mortgage: Insights from a Mortgage Company in Sheboygan, Wisconsin

Homebuyers in Sheboygan, Wisconsin are often unaware of the things that can cause problems during the mortgage loan process and possibly jeopardize their dreams of buying a new home. Fortunately, that’s where we can help. This mortgage company in Sheboygan, Wisconsin is going to explain how you can improve your odds of securing a mortgage to make the home-buying process as smooth as possible.

1. No New Credit Requests and No Debt Settlement

Do not apply for new credit — this involves making any big purchases for your new home, such as furnishings, appliances, and so on. The reason is simple: your credit requests will be reported on your personal credit history and can hurt your chances of approval. Wait until you have spoken with the mortgage lender in Sheboygan, Wisconsin you are working with before adding debts for your home mortgage closing.

You should also speak with your lender before paying off any debt. Why? Because a settled debt may not appear on your credit record, and the lender must re-verify each creditor’s current balance, which can be time-consuming. You can pay off those debts at closing without risking your chances of being approved for a mortgage.

2. Don’t Move Your Money or Savings Around

Your lender will verify all funds — including their sources — before your mortgage closing. Therefore, moving assets or money around is not a good idea. Even if the objective of the move is to consolidate your funds for buying your dream house in Sheboygan, Wisconsin, our advice is to leave everything where it is. You can pool your accounts (if needed) once they have been verified and approved by the lender.

3. Hefty Deposits

As mentioned above, all funding sources for the home transaction must be verified. The lender will scrutinize any large deposits into your asset accounts. So, be prepared to submit paperwork such as a copy of your pay stubs and proof of sale of an asset.

4. Maintain a Copy of Your Documents

Keep copies of documents your lender will ask for while processing your mortgage application. These may include your bank statements, tax returns, as well as any form W-2 (wage and tax statement), form 1099-S (proceeds from real estate transaction), or K-1 (form 1065 or U.S. return of partnership income), and other financial records from the past two years. If you sold a house within the last two years, keep your HUD-1 settlement statement on hand as well.

5. Handle Gifts of Money Properly

Gifts of money from family and friends are not uncommon when buying a new house. However, there are specific ways you must handle a gift to avoid a paper trail disaster. If you receive a gift, wait until you have spoken with your mortgage lender before accepting it.

6. Selling Something?

If you are selling an asset — anything from your car to your sports card collection — to raise funds for your mortgage closing, make sure you document the sale. For example, if you are selling your car, make sure you get the buyer’s cheque, a signed title (both sides), a bill of sale, and a release of liability form.

Looking for the Top-Rated Mortgage Company in Sheboygan, Wisconsin?

When in doubt, it’s always best to seek the advice of an expert mortgage company in Sheboygan, Wisconsin, like Compass Mortgage. Our experienced home loan consultants can help you navigate the home mortgage process and answer any questions you may have along the way. To get started, contact us today at (877) 793-9362 or send us an email by filling out this contact form.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Call us at (877) 793-9362 or fill out the contact form here to send us an email.

Our main office is in Warrenville, Illinois

(30 miles/50 km west of Chicago).

For a list of other locations and licensed states,

click here.

Home to a Better Mortgage Experience® and Get Committed® are registered trademarks of Compass Mortgage Inc. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Compass Mortgage Inc. and www.compmort.com with appropriate and specific direction to the original content. NMLS# 21808 – Illinois: MB.0005795, Arizona: 0909436 (dba Compass Mortgage Lending, Inc.), California: 4131332 (dba Compass Mortgage Lending, Inc.), Colorado: 21808 (dba Compass Mortgage Lending, Inc.), Florida: MLD308 (dba Compass Mortgage Lending, Inc.), Georgia: 38332, Indiana: 11020, Iowa: MBK-2001-0104, Michigan: FR022873, Tennessee: 135374, Texas: 21808, Wisconsin: 38296BA/21808BR, Oregon: 21808, Minnesota: MN-MO-21808, Ohio: RM.804327.000, South Carolina: MLS-21808, North Carolina: 20080, Kentucky: MC763652, NMLS Consumer Access Illinois Residential Mortgage Licensee Licensed by the California Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act