What to do and what not to do to ensure your loan process goes quickly and smoothly!
7 Things To Do When applying for a Mortgage…
- If you’re currently renting, pay by check
- Providing proof of your last 12 months rent payments often expedites your loan process.
- Obtain proof of employment for the past 2 years
- Last 2 years of w-2’s and/or 1099’s and filed IRS tax returns.
- Your most recent 30 days of pay-stubs showing current income.
- If you have gaps of unemployment, don’t worry, simply explain on a short letter.
- Avoid large deposits or withdraws from your bank account(s).
- Determine a down payment amount based on your available funds.
- Obtain a Pre-Approval Letter from a mortgage lender.
- Research a local real estate agent.
- If you find a house you like, be ready to move fast!
7 Things Not To Do When applying for a Mortgage…
When lenders review your application, they like to see consistency in your finances, here are a few things to avoid to ensure you are approved in no time!
- Do not change or quit your job before talking to a mortgage professional about the impact it will have on your loan approval.
- Do not make major purchases! Wait to buy your new furniture and car until after you have received the keys to your new kingdom.
- Do not withdraw, deposit or move large amounts of money in or out of your bank account without talking to your mortgage professional first.
- Do not pay off debts or collections unless instructed to do so by your mortgage professional, you also want to avoid closing any credit accounts.
- Do not pay cash for anything related to your new home, whether it be your Earnest Money, Option Money, Home Inspection and/or Appraisal.
- Do not have your credit pulled too many times as the more it is checked, it decreases your score and the lower your score, the higher the rate.
- Do not listen to the home buying myths. Buying a house is easier, faster and smarter than ever. Check out our Myth Busters section for more information.