Want to avoid the most common pitfalls of the mortgage process? Here are some simple tips to make your mortgage process a breeze.

DO…

Get Preapproved

Before you start your house hunt, know how much you can realistically spend and comfortably repay. It’s tough when you think you’ve found the one and fall in love with a home only to find out it’s not in your budget.

Keep Your Loan Officer Informed

Be proactive in telling your loan officer any information that might cause a delay like a change in employment or finances.

Continue On-Time Monthly Payments

Late payments will lower your credit score. Remember, your credit score is what helps to determine that you are financially trustworthy so avoid any actions that could bring your score down. Click here to learn more about your credit score.

Maintain Your Current Employment and Income

Your loan is secured on the understanding that you will be able to comfortably repay it based on your current circumstances and past financial history. A loss or decrease in your employment/income can prove to be a risk in the ability to pay back your loan.

Hold Onto Important Documents

Your W2s, tax returns, paystubs, and other paperwork that indicates your financial standing are super important! Be sure to have a paper trail of these documents that you can easily access.

Ask Questions
Your Loan Officer is there to help you throughout your journey into a new home.

Make Yourself Available Throughout Entirety of Process
During the mortgage process it’s a good idea to check your phone and email more frequently. In the case that something pops up your Loan Officer will need you to be available to keep the mortgage process on track and without unnecessary delay.

DON’T…

Go House Shopping Without Knowing What You Can Afford

Knowing how much you can truly afford is imperative when house hunting.

Change or Quit Your Current Job
Even after you’ve closed your loan you should still proceed with caution if you’re considering a career change because lenders tend to do a final check to verify your employment and income hasn’t changed since your final loan approval was provided. That being said, it is possible to change careers during the loan process, but it is risky.

Make Major Purchases

Major purchases such as new furniture, cars, boats, and even jewelry can be a red flag for lenders. Keep in mind, approval is based on the faith that you can repay your loan comfortably so any large expenses or additional monthly payments can change how much you have available to pay your mortgage. 

Make Large Cash Deposits

Large cash deposits in your bank account, outside of your regular paycheck, can be another red flag for lenders. Try to stick to your normal debits and credits during your mortgage process.

Plan a Vacation During Your Loan Process

Your Loan Officer will need your attention throughout the mortgage process. Being available and having access to your important financial documents will be imperative.

Apply For, Pay Off, Max Out or Close any Credit Card Accounts

The actions you take with your credit cards will have a direct effect on your credit score. Applying to open a new line of credit, paying off an account, maxing out your available funds, and closing an account can affect your credit score negatively.