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Keep your credit in shape
Keep track of your spending:
Keep track of checks you’ve
written, credit card transactions,
and ATM card usage. Review your
monthly statements and report any
discrepancies immediately.
Don’t exceed your credit limit on
lines of credit and credit cards.
Pay what you owe: Always pay
at least your minimum monthly
payment. Be sure not to skip any
payments.
Timely payment is one of the best
ways to establish yourself as a
good credit risk to future lenders. so
stay on top of your bills by making
them all due on the same day of
the month. Contact your lender —
many will allow you to choose your
payment due date.
Schedule automatic payments to
ensure you don’t forget a bill
Keep contact information current:
When moving, be sure to update
your address so you don’t lose track
of bills and statements
closely to see how you can improve your credit score.
• Be aware that using credit cards, even if you pay your bill in full every month,
creates a minimum payment, which mortgage lenders view as debt. When
possible, minimize credit card usage for the month or months before you
apply for a mortgage.
• Lenders require you to demonstrate a stable employment history, so be
careful about switching between 1099 and W2 status (for example, transitioning
from full-time work to freelancing or vice-versa); this could potentially
disqualify you because of your employment history.
A check from an unrecognized
source — for example, a gemach
— can be very difficult to explain
to a bank and may cause your
application to be denied. However,
gifts from blood relatives are
acceptable if they sign a gift letter;
be sure to discuss the possibilities
and limitations of such gifts with
your mortgage professional.
Lenders require meticulous documentation
of every dollar used
towards the down payment, so
any large or unusual deposits into
any of your accounts will be scrutinized
carefully. Whenever possible,
consolidate all the money
for the down payment into one
account as early as possible. Keep
copies of all checks, deposits, and
statements that document the
flow of money in and out of the
48 | 2017 Lakewood Home Buyer’s Guide