Save, Save, Save!

In the mortgage business, the following are the key factors used to determine success at getting approval on a mortgage or not:  credit, income, downpayment and net worth.  As always, the economy affects the financial industry mood.   Therefore, when the economy is unstable, like today, it determines the way lenders evaluate the factors listed above. 

One strong comment from lenders these days is if the client’s credit is not so great and the person is being given the downpayment from someone else (gifted money) the lenders see this as a weakness and may decline the mortgage application.

If you are not planning to buy for several months, get the gifted money into your account now, so when asked to prove downpayment in the future by giving your three months bank history, the lender does not see the large gifted deposit in your account. 

Of course, the best way to get the mortgage you want is to:

 Save, save, save your money!