1. Credit results Fluctuations during the mortgage process * Credit ratings change daily and there are tricks in the trade in which the borrower can maximize his credit standing.
- For example, if the borrower has maximized credit cards, this will have a very negative impact on their creditworthiness
- Maximized credit cards will reduce the consumer's creditworthiness
- The good news is that the decline in credit performance on maximum credit cards is not permanent the consumer credit rating will immediately come back immediately after paying off the credit card balance
- Homebuyers should consider paying off all credit card balances before applying for a mortgage
- A lower balance may have the best and highest possible credit ratings when a lender takes out a loan
2. Credit results and mortgage rates versus the qualifications of borrowers
* If the borrower's credit rating falls during the mortgage process, it doesn't matter:
- This is due to the fact that the initial creditworthiness assessments that were submitted with the mortgage application to process and guarantee mortgages will be credit assessments that will be used throughout the entire mortgage lending process
- The problem will be a decrease in credit ratings during the underwriting process if the borrower decides to change mortgage lenders during the mortgage process
- This is because the new lender will have to pay back the borrower and the new credit report and credit rating will be used
* On the other hand, if credit scores increase during the mortgage approval process, borrowers can use new higher credit ratings to block in order to get a better interest rate. Not all lenders allow this. However, we allow the use of higher creditworthiness to get a better mortgage rate.
* There are many lenders who do not allow borrowers to use a higher credit rating and replace it with a lower credit rating that was submitted with the original mortgage application. We allow it at Gustan Cho Associates at Loan Cabin Inc.
You want to know more, contact The Gustan Cho Team at 262-716-8151 or send a text message for faster response. Or write to us at gcho@loancabin.com. We are available 7 days a week, in the evening, on weekends and holidays.
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