by: Gaye Jones ~ AnnieMac Home Mortgage

Most people meet with a professional investment company, CPA or Tax Advisor before making large financial decisions. The same should be true before you decide to sell your current home and buy a new home. Many new guidelines/rules could affect your approval buying a new home. I have seen many instances where someone lists their home, accepts a contract and then finds out they don’t qualify for the new home they want to purchase.
An experienced Loan Originator can prequalify a potential customer and give them all their options to plan for a new purchase in a short amount of time. When qualifying for a mortgage today your income must be consistent and continue for a minimum of three years.
Many people do not understand that there is income that can and some that cannot be utilized for a purchase transaction. It is always best to have a mortgage professional review your income prior to making these important decisions.
Understanding your credit and the criteria that can impact your credit scores can be highly valuable. Allowing a Mortgage Professional to review your credit early in the process will allow you to time to impact your scores in a positive way.
Keep in mind that not all creditors report to all three agencies. Mortgage Professionals pull a “tri-merge” credit report which lists all three fico scores and the middle score is utilized. If you are monitoring your credit with one agency that may not be giving you an accurate picture.
As with any big decision, it’s always best to prepare early!