We understand the home loan process is overwhelming. It is helpful to have a mortgage professional to educate you through the loan experience. We want to make sure you are taking the right steps on getting your loan. Here are some dos and don’ts as you start the mortgage process.
Below are some mortgage dos and don’ts.
Do: Get pre-approved
Don’t: Shopping for a home before knowing what you can afford
When you get pre-approved for a home mortgage, you can find out what you can afford. There are more benefits to getting a pre-approval before shopping for a home; you can make a strong, more competitive offer with a pre-approval letter since the loan officer has already verified your income and assets.
Do: Work with a real estate agent and mortgage professional that you trust
Don’t: Starting the home shopping by yourself
It’s important to have a team of professionals to help you through the process such as a real estate agent, loan officer, home inspector, and so forth. Each professional can provide a unique skill set throughout the home buying process to help you achieve your goals.
Do: Understand your credit
Don’t: Open or close credit lines without consulting a credit professional
Before you start the loan process, it’s a good idea to understand your overall credit picture. You can request a free copy of your credit report from each of three major credit reporting bureaus. If you see any issues, you can contact the credit agency to get it resolved. We highly recommend that you avoid opening new lines of credit, closing credit lines, co-signing on loans, or making major purchases with credit before or during the loan process.
Do: Keep the lines of communication open
Don’t: Be slow to respond to your loan team
As your mortgage team, we want to keep you up to date through the process and provide clear communication every step of the way.
Do: Make a savings plan
Don’t: Make major purchases
We recommend that you focus on saving and not spending your money. You may need funds available for things such as earnest money deposit, a down payment, or closing costs.
Do: Maintain your current employment and income
Don’t: Make major changes such as quitting your job or changing jobs
We recommend keeping your job and income steady, and avoid major changes such as quitting your job, you can help the process go smoother.
Do: Have a paper trail for funds coming in and out of your account
Don’t: Make large cash deposits into your bank account other than your paycheck
The loan officer is required to document where your funds come from for earnest money deposits and down payments, even if you are using gift funds. Be sure to have a clear paper trail showing how money is coming in and out of your accounts, and where it’s coming from.
Do: Keep good records
Don’t: Be surprised if you are asked for additional documents
The loan officer would like to see documentation for things such as income, employment verification, and your current debts or obligations. You can help the process move along smoothly if you have good records to provide, such as W2s, tax return documents, paystubs, or bank statements.
Do: Ask questions
Don’t: Panic! (We got your back.)
Our team wants you to feel knowledgeable and confident about the mortgage process. Please don’t hesitate to ask questions!
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