Do's and Don'ts During the Mortgage Process

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Are you’re ready to get a home loan; this can help to have as much information about the mortgage process as possible. That way you can take the right steps towards getting your loan, and hopefully avoid some of the more common pitfalls along the way.
    What steps can you take to keep the process running smoothly and on track towards your closing? The home loan application process begins with determining what you can realistically afford, gathering the necessary documents as outlined by your lender and familiarizing yourself with the fundamentals of the home loan process, interest rates, loan terms and additional fees associated with buying a home.

   But once you’ve begun the mortgage process, there’s plenty to do. And plenty not to do. Check out this handy list of dos and don’ts that can help make your first step towards owning a home is a smooth and successful one.  

DO’S

1.  Get pre-approved for a home loan mortgage

2. Choose a reputable lender,A good lender will help you secure  the best overall mortgage

3. Keep your total housing payment equal to or lower than 50% of your monthly gross income.

4. Keep paying all of your bills on time, including your current  housing expenses, credit cards, loans, and all other monthly obligations.

5.Work with home buying professionals such as the loan officers, real estate agents, home inspectors, and other professionals who will work with you during the home loan process, as your coaches. Each professional has their own unique skill set and experience, and together they all want to help you reach your end goal. 
6. 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. Avoid making large cash deposits (or electronic transfers) into your personal banking account that can’t be accounted for.

7. Notify your Loan Officer about any large deposits, outside of your normal monthly income.

  8. Do make a savings plan. A focus on saving, not spending, can help you avoid some of the mistakes more commonly seen during the process of getting a home loan. Often times, the key to closing your loan on time are promptly providing your loan advisor with the documents a lender requests.


9. Let your Loan Officer know immediately if you expect anything to happen with your current employment status (promotion/demotion, job loss, change in income, etc.)

 10.   Keep the lines of communication open. Your mortgage advisor will keep you up-to-date throughout the entire process, and provide clear communication every step of the way.



DON’T

1. Don't go house shopping without knowing what you can afford.

2. Don't Get tripped up on low-interest rates

3. Resist the temptation to make an offer on the first home you like. Shop around and take your time before committing to one of the  biggest financial relationships of your life.

4. Don't open or increase any credit, including credit cards, loans, or any other lines of credit.


5. Don't forget about closing costs, closing costs include expenses like title and settlement fees, taxes and origination, plus prepaid items like homeowner’s insurance or homeowner’s association fees.

6. Don’t Co-Sign for another Borrower; this is the same as applying for new credit. If you co-sign for another borrower, this will show up on your credit report and could affect your credit

7. Do not allow any account to be over drafted. Late payments or overdrafts may impact your mortgage loan approval. Avoid making unnecessary transfer between accounts without receiving the appropriate documentation required for your loan.

8. Don't start any home improvement projects. Don’t make any large purchases, such as a new car, boat, or furniture during this time- as these could affect your credit.

9. Don't change your job or become self-employed without first inquiring about the impact the change may have on your loan.

10. Don’t be slow to respond to your loan team, the loan process may seem confusing, or even scary, but your adviser is here to help you get to the finish line. If you trust in their expertise, keep the lines of communication open, and learn what you can about the loan process, you may even find that it’s less complicated than you ever imagined.
Now you are armed with the knowledge to make your home buying journey successful and stress-free! As always, we are here to help and answer any questions you may have about your mortgage, credit, home construction or anything to do with purchasing the new home of your dreams! Call your Fowworld properties or email us through our website.

     

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