As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing
Inconsistencies On Your South Jersey Mortgage Loan Application Spell TROUBLE
It’s important that the information submitted on your South Jersey mortgage loan application is accurate or complete. Even minor mistakes can spell trouble for you later when trying to obtain credit. For the purposes of getting a loan, be specific. Keep your eye out for and avoid the following inconsistencies on your South Jersey mortgage loan application.
Name-spelling inconsistencies on your South Jersey mortgage loan application
Say your name is hyphenated as in Sue-Ellen Michaels, for example. If the lender submits only the first and last names, Sue and Michaels, to all three credit-reporting bureaus – Experian, TransUnion, Equifax, the inaccurate or incomplete information is then carried over during the credit inquiry. Carrying over inconsistencies can cause a difference of 10 points to 20 points in the calculation of your credit score. A good credit score matters, because your credit score is one of the biggest factors in determining loan costs and interest rate.
Lenders pull your credit from all three credit-reporting bureaus in order to get three scores - high, middle and low. The middle score is used for your South Jersey mortgage loan application. Name-spelling inconsistencies can create an inaccurate or incomplete credit history. And when the loan finally comes due for credit disposition, the inaccurate or incomplete credit history may raise questions about you to the underwriter. Fewer questions mean smoother sailing through the loan process!
Only one credit score is needed to get your mortgage loan, but three scores are best. Three scores allow the lender to help get you approved for lower rates and fees on your mortgage. Name-spelling inconsistencies on your South Jersey mortgage loan application could result in not getting all three credit scores. For more about not getting all three credit scores and other loan blunders, read 10 Credit Score Loan Blunders Consumers Don’t Know About.
Save yourself the trouble caused by name-spelling inconsistencies. Provide the lender with your full, legal name (the name on your tax returns and W-2’s, for example) accurately, completely and consistently with the rest of your financial documentation. If Sue-Ellen Michaels is on one document, make sure Sue-Ellen Michaels is on all other documents. If you go by a nickname instead of your legal name, such as Greg instead of Gregory, be sure to use your legal name on all your financial documents. It is best to use your legal name in each of your signatures, too. Remember, be specific and consistent.
Residential address inconsistencies on your South Jersey mortgage loan application
Inaccurate or incorrect address information can cause many of the same kinds of trouble as name-spelling inconsistencies do. Errors and inconsistencies in address information raise red flags about you to lenders, and red flags lead the lender to consider you a higher credit/default risk.
Every physical address for the places where you have lived in the last two years must be listed and submitted on your South Jersey mortgage loan application. If the mortgage company is unable to accurately identify a previous address, conditions to your application will be added to secure clarification.
Before submitting your application, make sure the lender has consistent and accurate address information on each document of your application. Proofread to make sure there are no omitted or transposed digits or letters. Again, be specific and consistent.
Supplying the lender with accurate and consistent information on your South Jersey mortgage loan application at that time is the best you can do. Inconsistencies on previous applications cannot be undone.
At the time of closing, you’ll be asked to sign an AKA statement when signing mortgage loan papers. An AKA statement is a blanket correction to help create name consistency within your loan application. It’s meant to correct any inconsistencies other creditors have submitted on previous credit inquiries you have made in the past.
Make sure the information on your South Jersey mortgage loan application is specific and consist with your full, legal name and previous addresses. Taking the extra step to ensure each “i” is dotted and every “t” crossed before your credit is pulled will help you get the best possible outcome on your mortgage. Supplying information that is 100% correct means even more smooth sailing through the loan process!
One last piece of advice – check your credit reports periodically for accuracy and consistency before you set out to get a mortgage. Make any necessary corrections you happen to find. You can get your free annual credit reports from the credit-reporting agencies on AnnualCreditReport.com. A free credit report summary on Credit.com is updated monthly. Watch for important changes there.
More questions? Contact Sam Lepore at (856) 297-6827 or email@example.com. I would be glad to answer questions you may have about your South Jersey mortgage loan application.
Sam Lepore is a Realtor with Keller Williams in Moorestown, NJ. Call him today at 856.297.6827 ....