| July 2, 2012

Improve your chances of getting approved for a mortgage

Summer is in full swing and marks the beginning of the home buying season. Historically low mortgage rates and falling home prices are prompting many consumers to start shopping for homes. While market rates may be in a buyer’s favor, lending criteria remains strict and there are several actions individuals should take prior to submitting a home loan application to improve their chances of getting approved.

First, it’s crucial that applicants check their credit report and score. A consumer’s creditworthiness will play a central role in whether they are approved for a loan. Following the recession, lenders have increased their credit score requirements in an effort to avoid taking on risky borrowers. Most industry professionals encourage borrowers to check their file roughly six months in advance to submitting their application because it will give them time to correct mistakes and change behaviors that may be hurting their score.

Second, consumers should determine how much they can feasibly afford to spend on a home. Housing costs typically represent the largest monthly expenditure consumers are responsible for, and choosing a property that does not eat into too much of their take-home pay can help borrowers avoid debt and financial strain. Most experts discourage owners from taking on a loan for which payments exceed 28 percent of their monthly pay. Consumers can benefit from enrolling in housing counseling sessions, which can help them seek out affordable mortgages. These services can assist buyers in mapping out a money management plan that allows them to manage mortgage payments, while still having enough income to contribute to retirement, savings and other financial goals.

Lastly, borrowers should begin saving for a down payment and closing costs. Down payments may range from 3.5 percent for loans backed by the Federal Housing Administration to 20 percent for traditional lenders. Those who qualify for Veterans Affairs loans are not required to make a down payment. A large down payment can not only help buyers qualify for a mortgage, but also reduce their monthly payments and exempt them from being required to purchase private mortgage insurance, or PMI. Consumers who make a 20 percent down payment do not have to pay PMI, which is a policy paid to the lender that protects that bank in the event that borrowers default on their loan.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
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Consolidated Credit Consulting Services, Inc. has been verified as the owner or operator of the Web site located at www.consolidatedcredit.org. Official records confirm Consolidated Credit Consulting Services, Inc. as a valid business. Call us today and see what we can do for you.

Consolidated Credit is a Certified ISO 9001 company, as verified through Bureau Veritas Certification.

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

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