Do’s and Don’ts of the Home Mortgage Process
Here are a few Do’s and Don’ts to remember before and during your home buying mortgage process:
- DO get pre-approved. In order for a Real Estate agent to show you Homes you must have an approval letter from a bonafide mortgage company such as Harris Mortgage.
- DO continue paying credit cards and other debt.
- DO expect a final credit check before loan closing. Before closing your mortgage loan, the bank will ensure that your credit is still intact, and no new debt has been added.
- DO be open and upfront about any aspects of your financials that you think are of concern.
- DO advise if you owe any taxes, child support, spousal support, 401k/Retirement loans, judgments or any other miscellaneous debts that may or may not show up on your credit report.
- DO ask your mortgage agent about options with a higher interest rate but lower out of pocket expense vs a lower interest rate and higher out of pocket expense. Everyone’s financial situation is different, so it is always best to review both options.
- DO notify your mortgage agent of any recent changes of employment, gaps of employment or any time off within the past 3 years.
- DO follow up with the loan officer. Chances are the loan officer in charge of your loan is processing multiple other applications simultaneously. With so much on their plate, it never hurts to check in with your loan officer on a regular basis and ask questions about the loan process. Be responsive, so that the process can speed along.
- DO be truthful with your loan agent. In order for them to be able to service your properly without any unforeseen complications. The more your agent knows, the easier to structure your finances.
- DO include all financial information in your loan application. Failing to disclose something can result in a delay in approval.
- DON’T Get attached to the first house you see. It’s easy to do. You fall in love with the first house you place an offer on, and then are heartbroken when someone else gets it. Talk to your agent about your local market so you have realistic expectations from the get-go.
- DON’T go house shopping without knowing what you can afford. When you get pre-approved for a home loan, you can find out exactly how much house you can afford. This means hopefully you’ll avoid falling in love with a home outside of your price range when you start looking.
- DON’T compare your mortgage transaction with a co-workers, relatives, or friends’ mortgage process. Each person’s process is unique in its own way and all will vary from one another.
- DON’T change bank accounts. This will only complicate and delay the home buying process.
- DON’T call your mortgage agent every day. Chances are your agent is working on numerous transactions. The more time he or she spends on the phone with you and other clients the less time they have to review, file and push paperwork through to the bank.
- DON’T check your credit report after being approved. This will lower your credit score and affect your current mortgage application.
- DON’T change jobs. Changing jobs without consulting your mortgage agent can affect your qualification for your new home.
- DON’T make major new purchases on credit. That means no new credit cards, furniture, cars, appliances, etc.
- DON’T make any large deposits or withdrawals from your Bank accounts prior to consulting your Mortgage agent.
- DON’T give a 30-day notice to your landlord or property management company until you have been notified by your mortgage agent that your loan documents are in title.