July 16, 2019 | By RGR Marketing Blog

5 Things Your Mortgage Prospects Should Do Before Applying for a Loan

Not every mortgage prospect that walks through your door is an ideal candidate fobuy Mortgage Leadsr a mortgage. And, for every unprepared applicant, you can expect to spend several hours talking with them and looking over their financial information before you determine they can’t get approved.

Therefore, educating future mortgage prospects is vitally important for any loan officer. Better-prepared applicants are more likely to be approved, meaning that all your hard work will pay off. To help improve your prospect’s chances of getting approved for the mortgage they want, here are five things you should tell them they need to do before they apply for the loan.

#1: Stop Applying for Any Forms of Credit

If you have someone interested in purchasing a mortgage in the near future, then you should tell them to avoid applying for any other forms of credit until after they close on their house. For every line of credit opened, their odds of getting approved for a mortgage drops. They could even find themselves over-extending their credit, which will make qualifying for a mortgage any time soon a real difficulty.

#2: Pay Down Credit Card Balances

Your prospects should stop using their credit cards and concentrate on paying down their balances, instead. This can be tough for some people, but it is a must if they want the best chance at getting financing for a home. Credit cards should only be used in emergency situations until after closing.

#3: Pay All Their Bills On Time

Your prospect needs to show lenders that they can handle their daily expenses easily, so paying their bills on time is essential, especially for those that report to the credit bureaus. Just one late payment can ruin an applicant’s chances at getting the mortgage they want.

#4: Save, Save, Save

If your mortgage prospect doesn’t have enough money saved for a down payment, then there’s little chance she will get approved. Depending on her situation, she may just need 3.5% of the home’s price saved, but if she wants to avoid paying private mortgage insurance, then she’ll need at least 20% saved. Of course, the more money she has available to put down, the lower her mortgage payment will be, so this tip should be a no-brainer.

#5: Stay With Their Job

Changing jobs is never a good idea for someone who is planning on buying a home (unless the new job provides the individual with a significant increase in income). Lenders want to see borrowers with lengthy job histories because it shows they’re dependable and that they have job security, two things that help mitigate risk.

Try the Mortgage Leads From RGR Marketing for Higher Conversion Rates

Are your organic leads not converting as readily as you would like? At RGR Marketing, we provide mortgage companies like yours with high-quality, verified mortgage leads that can help increase your conversion rates and grow your business.

When you buy leads from us, your lead list is exclusive and not shared with anyone or any other lead generation provider. Our leads are validated and ready to be converted. Discover the difference mortgage leads from RGR Marketing can have on your business today!

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