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!
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Pre-Qualify NowDo: 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!
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.
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 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.
