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.
- 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.
- 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.
- Do not run your own credit report. Multiple credit inquiries can negatively affect your credit score.
- 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.
- Your banking history should show stability. Avoid opening, closing or transferring asset accounts during this time.
- 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.
- 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.
- 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.
- Be completely honest and factual when filling out paperwork. These documents will be scrutinized by underwriters.
- 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.