Important things to keep in mind if you are planning to
a home in the near future.
• Credit history - HCT will pull your credit report as part of the HCT application process and identify any barriers that you may need to address. There is a $20 application fee.
• Do not apply for new credit or weaken your credit scores - Ensure that you pay your current creditors on time each month and reduce credit account balances as much as possible. Do not make any major purchases! Although your credit score will not be the only determining factor in obtaining a first mortgage loan, it is an important factor. Your score can be adversely affected by new inquiries made by outside parties, dramatic increases in your balances, new accounts, or late payments. If you discover that you need to increase your credit score to be eligible, ask for guidance from our counselors to determine the most effective course of action since some strategies that seem right intuitively can actually hurt your credit score.
• Save your bank statements, pay stubs, tax returns, child support statements, benefit award letters, etc. - We may need additional paperwork to document your financial status. Be prepared to continue documenting your financial status until closing is complete.
• If you are paying any debts in full, especially collection accounts, BE SURE TO KEEP THE RECEIPT(S) - It may take a while for a debt to show up as paid on your credit report.
• Do not change your profession or employment status - The first mortgage lender will need to confirm two years in the same line of work.
• Keep in mind that your checking account is also a credit reference - Do not overdraw your account!
• Be prepared to put your financial story on paper - If you have had credit issues or employment issues, you may need to write additional explanation letters.
• Make a realistic budget - Your house payment will likely be more than your current rent. Now is the time to determine if you can comfortably handle the increased monthly cost.
• Be persistent in following through with gathering your documents - If you do not turn in all required paperwork, we can not help you get your loan.