1. Hang on to credit card accounts. Keep a credit card you have had for years even if a new credit company offers you a better deal. An old card shows you have a long credit history and this is an asset when applying for your mortgage.
2. If you have too many loans, consider consolidating them before applying for a mortgage. Do this at least six months before your mortgage application.
3. For a subprime mortgage you will pay more in interest and points. However you will still get the loan. It really isn't a bad trade off.
4. An assumable mortgage is usually 50%-60% of the original purchase price. For your benefit get the seller to carry back a second mortgage for another 20%-40% of the sale price. This will raise the total mortgage amount to a level where the buyer will only need to put down 10%-20%.
5. Before getting an equity loan, look at your finances carefully. Make sure you can in fact carry the monthly payments. You don't want to lose your hard earned money on a property that you won't be able to hang on to.
6. An asset-based mortgage ties up your savings and the bank will not let you make withdrawals on the asset given as security until the mortgage is paid down or paid off.
7. Pay you bills on time. Nothing messes up your credit quicker than late payments. This is the easiest ways to preserve your good credit.
8. If you cannot pay all your bills, make sure you make your mortgage payments. You don't want to be staring at foreclosure.
9. It is a good idea to get a copy of your credit report before applying for a mortgage. That way you can see what the lender will see and have the right answers for any questions that may arise.
10. The basic method for correcting bad credit is twofold. First of all you have to write a letter to the credit bureau explaining the problem and why it was not your fault. Secondly you must provide some documentation proving what you say.
11. If you have new credit or no credit you can quickly establish credit by showing rent receipts, utility receipts and informal loans from friends and family, which can be shown in the form of canceled checks.
12. If you're looking for a quick mortgage, go to a mortgage banker. Many of them are now hooked up on the Internet, and can give you fast results.
13. The longer you can show that you've been self-employed, the better because a lender wants to see that you are successful in your business endeavors.
14. Never try to submit a false tax return to a lender. It may work, and you might get the mortgage. But that false tax return will stay in your file forever. And if you ever default on your mortgage, the tax return will be pulled up, and you will have to face the IRS. It's not worth it.
15. Do not get a no-document mortgage. It usually involves a higher interest rate, higher costs and a greater down-payment. You can usually get enough documentation together to qualify for a documented mortgage.

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