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The Dos and Don’ts of the Mortgage Process

December 11, 2022blog0

mortgage-process

We are aware that getting a mortgage might be stressful. During the home-buying process, bank statements, credit scores, interest rates, loan estimates, closing disclosures, and more can truly weigh you down. We’re providing you with a short list of dos and don’ts to assist you sort through the confusion and speed up the mortgage application process so you can concentrate on the enjoyable part: choosing your ideal house!

Do: Obtain early pre approval

Don’t: House-hunting without first determining your budget

Early in the home buying process, getting pre-approved for a mortgage loan allows you to determine just how much house you can afford. With a pre-approval letter, you can also make a better, more appealing offer because the lender has already confirmed your ability to pay the monthly installment by looking into your income and assets.

Do: Consult with home-purchasing experts

Don’t: Believe You Have to Face It By Yourself

Think of your home-buying experts as your coaches, including loan officials, realtors, and home inspectors. Every one of them has particular expertise and experience that will aid you in achieving your objective.

Do: Recognize your credit

Don’t: Open or close credit lines without professional advice

When applying for a mortgage, it’s a smart idea to be aware of your entire credit picture. Each of the three main credit reporting bureaus should provide you with a free copy of your credit report. To address any inaccuracies, get in touch with the credit bureau. Prior to or during the mortgage loan application process, refrain from creating new credit lines, canceling existing ones, co-signing for loans, or making sizable expenditures with credit cards. Include all of your obligations and liabilities on your mortgage application, regardless of your financial situation. The best policy is always to be honest! You can also check the First Time Home Buyer Program to smoothen your loan application process.

See what you qualify for

Do: Maintain communication channels open

Don’t: Take a while to get back to your loan team

Your loan officer will communicate with you during the entire mortgage process. By responding quickly to the loan officer’s requests for any documents or information, you can keep the process moving. The borrower’s responsiveness is frequently the key to getting a mortgage approved on time.

Do: Plan your savings, please

Don’t: Spend a lot of money

The time has come to prioritize saving money rather than spending it. You might need to have money on hand for items like a down payment, closing charges, or an earnest money deposit. Avoid making any significant purchases during this time since they might affect your credit, such as buying a new car, boat, or furniture. Make it a habit to pay your bills on time because missed payments can also be a warning sign on a mortgage application.

Do: Maintain your present employment and source of income

Don’t: Resign or Change Positions

The key to getting a mortgage is demonstrating steadiness. If you maintain consistent employment and income while avoiding significant changes like quitting your job, the process will go more easily. The only exceptions to this rule are getting a pay raise or a promotion, so don’t stress about those! Making changes to your tax returns during the mortgage application process can also cause problems. If you do so, you might require a new loan approval.

Take the first step towards finding your new home.

Get approved online.

Get Prequalified

Do: Maintain accurate records

Don’t: Be shocked if more documents are requested

Mortgage lenders prefer to see proof of your income, proof of your employment, and your current debts or obligations. Good records like W2s, tax return paperwork, pay stubs, and bank statements can be very helpful in this situation.

Getting Started

Are you prepared to explore the options for mortgage loans? Dream Home Mortgage is available whether you’re just seeking for more information or are ready to get started on a mortgage loan. Our expert lenders at Dream Home Mortgage are here to help you every step of the way. Call us (972) 245-5626 to book a free one-on-one consultation with one of our specialists.

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