Your biggest mortgage questions, answered

By the nbkc Home Loans team

  

Getting ready to purchase your next house? We’ve got good news for you: Second or third-time home buyers typically have less anxiety about the mortgage approval process. As a second-time buyer, you’ll better understand why certain documents are requested from the lender, where to locate these documents and how​to prepare for the extra funds needed for closing in addition to the down payment.

  

While you probably have less anxiety about the process this time around, our loan officers still hear plenty of questions from second and third-time home buyers. Here are some of the top questions:

  

1 - Do I need to pay off any credit cards or other loans before I apply for a new mortgage?

Definitely not. You can still apply and a loan officer will review and calculate the maximum mortgage payment or loan amount you qualify for. If you have any debts that could be paid off to qualify you for a larger loan, a loan officer will help you figure out how to navigate that.

  

2 - Will my credit score be affected if I apply for a mortgage? I don’t want my credit score to go down.

Credit scores are fluid and dynamic based on the reported balance and payment history of your debts, and your scores can change every day. Fortunately, one mortgage inquiry from a loan application doesn’t impact your score like it used to - instead the credit system analyzes how many inquiries you have over time, typically 90 days. However, your credit score will be negatively impacted if you max out your credit cards or if you make late payments on your credit cards or any loans.

  

It’s better to apply for a mortgage, have a loan officer check your credit score and then make a game plan from there. If your loan officer notices anything that could possibly increase your credit score to help you qualify for a better loan, they’ll advise just how to do it.

  

3 - Can I qualify for a new mortgage if my current house doesn’t sell before buying the new one?

Quite possibly, yes! When you complete the loan application, your loan officer can help you determine if your monthly qualifying income can support a new mortgage payment on top of the current minimum payments on your mortgage, credit cards and any other loans. Ultimately, we want to make sure you have enough money left over every month for all of your living expenses like gas, groceries and utilities.

  

What other questions do you have about the mortgage process? Throw them our way, we’re happy to talk through them with you.