Tuesday, September 23, 2014

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Tips To Help Property Buyers Land A Mortgage

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TWC News: Tips To Help Property Buyers Land A Mortgage
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Getting a mortgage is a complicated process, but certain tips can help buyers avoid getting turned down for one. NY1's Real Estate reporter Jill Urban filed the following report.

Getting a mortgage is a complicated and labor-intensive process. Sometimes buyers who think they are well-qualified are surprised when they get turned down.

"You may have a great credit score and you may have a high income, but if you don't have the whole package and all the information, you could get turned down by a bank," says Robbie Gendels of National Cooperative Bank.

Gendels says sometimes buyers don't realize what it takes to have that whole package. For one, if your credit score is questionable, you need to do your due diligence.

"Contact each credit bureau, go over every line. They may have made a mistake. If they do, call them," Gendels says. "And you can also call them and say, 'How can I make this better?'"

Even if you have good credit, you could still be turned own if your debt-to-income ratio is too high. Too much debt can be a liability no matter how much you earn.

If you are self-employed, even if you earn a lot of money, you need to line up your tax info years in advance to show you have enough income to pay the loan.

"You need to make sure you have sufficient funds and it needs to show on the adjusted line 37 of your tax returns, because many times self-employed borrowers take a lot of deductions and that's a reason that the bank may deny you," says Gendels.

Sometimes a mortgage turn-down has nothing to do with the buyer — it could be the building. So ask the managing agent what banks have approved the building before. If it is new construction, make sure it is at least 51-percent sold.

Gendels says a big reason for turn-downs is often because something changes during the process. Make sure your financial picture remains the same from pre-approval to closing.

"If you're changing jobs, they'll want to know that," Gendels says. "The one thing you don't want to do is you don't want to incur any additional debt. Don't lease a car, don't get more credit debt."

Hopefully you will get a yes. If you get turned down, you should call your loan officer to find out what it was that caused the denial, and then start to work on your application so you can try again another time.

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