Buying a home can seem like a daunting undertaking. While many parts of the process can be stressful—like finding and securing the perfect house—the mortgage process doesn’t have to be. Below is a list of 10 helpful tips to consider to help things go smoothly.spooky-blog

  1. Maintain your current job to show financial and employment stability. Quitting your job, changing jobs or even moving positions within the same company may affect your approval.
  1. Spend conservatively and avoid making any large purchases. Significant purchases may impact the amount you will have available for a down payment. The addition of monthly expenses can also result in a shift in your debt-to-income ratio.
  1. Do not run your own credit report. Multiple credit inquiries can negatively affect your credit score.
  1. Avoid depositing or withdrawing large amounts of money into or out of your bank accounts. Any large movements in funds will be reviewed and are subject to documentation and examination.
  1. Your banking history should show stability. Avoid opening, closing or transferring asset accounts during this time.
  1. Consistently pay your creditors and do not skip payments. Keep in mind that disputing bills can show up as a questionable item on your credit report.
  1. Do not open, largely increase, or significantly decrease your credit balances. While completely paying off a large balance on an account or closing unused lines of credit may seem like a positive move, it can have a negative effect on your approval.
  1. Do not cosign on any other loans while your mortgage is processing. This can dramatically affect your approval even if you are not making any payments.
  1. Be completely honest and factual when filling out paperwork. These documents will be scrutinized by underwriters.
  1. Avoid beginning any home improvement projects, specifically those requiring you to take out a loan.

 

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Castle & Cooke Mortgage, LLC® (NMLS #1251) is a leading independent mortgage lender headquartered in Salt Lake City, Utah, with locations across the United States.