ANN ARBOR, MI--(Marketwire - Mar 28, 2013) - Gold Star Mortgage Financial, a highly regarded national direct home lender, has released a statement providing homebuyers with information regarding best practices for securing a mortgage. This statement serves as a response to an article published by YNN that highlights some of the behaviors that borrowers should not engage in when applying for financing.
In the article, Mortgage Sales Manager Phil Reece explains that some of the things that borrowers believe will help their case can actually hurt the chances that they are granted a mortgage: "People will often try to do things that they think is [sic] in their best interest to prepare for a mortgage, but may hurt them at the end of the day. Often people think getting a new credit card to try and establish some credit is what they need to do before getting a mortgage, when in fact getting new debt may work against you if you already have good scores."
Reece goes on to explain: "Any debt that you incur will appear on your credit report. So, if you co-sign on a student loan or a car loan with someone else that debt lives on your report until that debt is paid by the person you have helped out. Any new debt is baggage for the approval process. It's important to make sure that if you're planning on buying a home in the near future, that you consider any debt that you may be getting proceeding that mortgage."
The team at Gold Star Mortgage Financial further elaborate, providing borrowers with additional insight regarding behaviors to avoid when seeking financing for a new home: "The pre-qualification process is actually quite simple," asserts a representative from Gold Star Mortgage Financial, "and being prepared is one of the smartest things borrowers can do to help the process run smoothly. You should start researching lenders before searching for a home. Find a lender who's experienced in the industry and can explain things thoroughly. Most importantly, you should choose a lender who you are comfortable working with. Additionally, you should be truthful and forthright when speaking with a lender. Tell them everything they need to know about your financial history. If you are dishonest, you will risk damaging your credibility and even your shot at a mortgage."
Individuals who are interested in purchasing a new home are encouraged to speak with financial professionals if they are in need of recommendations for boosting credit scores.
Gold Star Mortgage Financial is a national direct home lender that is headquartered in Ann Arbor, Michigan. Recognized for its low rates and fees, Gold Star Mortgage Financial is also lauded for its dedication to superior customer service. The company was founded by Daniel Milstein, who has been ranked as the #1 mortgage originator in the country in the past. The company was ranked #349 on the INC500 list of fastest-growing companies in 2009.