You have a ratified offer and now you need to finalize the mortgage application for your money to complete the purchase of your new home. What do you need to know?
My background as a mortgage processor gives me some inside knowledge I can share. Let’s take a look into getting a mortgage.
What NOT to do:
- Don’t deposit large amounts of cash into your bank accounts – make sure when you begin your home purchase process to have your money in your bank account ready for your purchase
- Don’t quit your job – of course having a job is necessary to repay your loan so don’t quit your job or make job changes in the middle of a mortgage application. A lender will have to verify your employment and income and will re-certify this information a few days prior to your purchase
- Don’t open new credit – be sure to hold off on any large purchases with new credit accounts. Yes, you want to buy all those nice things for the new house but hold off. No appliances, furniture, etc. These new credit accounts can affect your credit approval. Keep in mind even if the retailer is offering no payments or no interest for the first twelve months, this will still trigger a credit alert and an estimated payment will be required to be included on your mortgage application. So NO new accounts
- Avoid transferring money between your accounts – a mortgage lender is required to verify all assets and this becomes a stressful task for many clients. The source for any non payroll deposits has to be documented for each loan. Be prepared to provide your mortgage lender with all bank account statements for all accounts and all pages of those statements
What you SHOULD do:
- Be prompt, when a lender requests documentation. Promptly gather the items and provide them for their review
- Be thorough– when items are being requested, be sure to ask questions and read everything thoroughly so that you are providing the proper documents needed for your mortgage approval
- Continue to pay any debt you currently have on time – late payments can affect your credit and this can affect your mortgage approval
- Remember that mortgage professionals are required to make sure that all loan guidelines are met. Mortgage applications require a lot of documentation and gathering all of this can be stressful for you but the mortgage professionals are required to collect all of this information and they are attempting to help you obtain money for possibly the most important purchase of your life. Communication is key: if you find yourself getting frustrated, speak to your mortgage professional about how you can assist to complete the process
- Stay excited and continue with any self care routine you may have in place. You are buying a home and it should be fun and exciting but know that obtaining a mortgage can get stressful and keeping with your normal self care routine can assist with the stress
Hopefully this small inside look into the mortgage process doesn’t scare you away from the great opportunity of owning a home of your own. My husband and I work with local mortgage professionals that know how to make the process move as smoothly as possible with their many years of experience. If you are prepared before buying your home with the knowledge, you are already a step ahead of most. Please reach out to us with your home buying questions.
Realtors Jen and Larry Lindt 