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New Mortgage = New Life

New beginnings are sought after by most people and if you are one of them, a new home can match the whole experience. Life transition will be complements by purchasing a new home. It could be from getting married, finding a new job or even retiring. These days mortgage is super tight and there are some things that you want to avoid. After all new life is making resolutions.

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With that said, the first thing you need to do is avoid making new charges on your credit card. This is considered to be the most basic and obvious rule when getting a mortgage in san francisco. Although this is the case, a lot of people overlook this in making transition. Wedding expenses, trips, new clothes and new gadgets are just some examples of things that can add to your credit balance. Ideally you might want to hold these off unless you are moving in the house.

The next thing is to avoid new credit. This includes applying for new credit card or making huge purchases. New car or boat is something that you want however this is something that could hurt your application. Credit lenders can raise their eyebrows when approving your application. You might get an approval but you can end up paying a much higher interest rate.

For those who are planning to retire, never quit your job prior to applying for mortgage.  It will be easier to qualify for mortgage or any loan for that matter if you have a regular income. This is compared to getting a source from pension or retirement funding. In case you are looking for new job, postpone this first while finding a new home. Although a high income make it easier to get a mortgage, lenders will find unemployed person not really eligible for a mortgage.  It will also be great to get married first before shopping for mortgage loan. This will make it easier for you to qualify with combined income. Of course assess the credit of your partner since a bad credit can damage your loan. This could also affect your credit score.

It is also quite hard to get a new mortgage if you still tied with another.  This is true if you owe lot money than your property’s worth. You might want to put money on the old mortgage before getting a new one.  Avoid making a mistake of not checking your credit before taking a new loan. You don’t always assume your finances are fine. Correct any mistakes if there are any.

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