Buying a home is often counted among the great milestones of life. Whether it’s your first home, an upgrade for a growing family, or falling back to something cozier for retirement, there’s nothing like the excitement of finding a space that’s yours.
But to get through the mortgage process smoothly, every future homeowner needs to be prepared. This includes organizing your paperwork and finances, along with finding the right mortgage loan officer can get you across the finish line.
To help you get started, the Mortgage Loan Officers at SESLOC put together this list of “Do’s and Don’ts” to make sure you get through with ease.
Do: Apply for Preapproval Early in the Process
Before you can envision your future home, you must understand your overall budget and how much you can afford. Scheduling a call or an in-branch appointment with one of our Mortgage Loan Officers can help you get clarity in your goals. With a credit check and a plan of action, you can get a letter of preapproval before you start your search, signaling your serious intention to purchase a home.
Don’t: Apply for New Credit Before You Start the Mortgage Process
Applying for new debt – or even increasing the balances you carry on your current credit cards – may become a red flag as it can significantly change your obligations and payments. To get the easiest path towards closing, avoid applying for any new credit cards, auto loans, or making any major purchases until after the mortgage is complete.
Do: Stay Current on Your Credit Accounts
Did you know the biggest factor in calculating your credit scores is your payment history? Paying your bills on time shows that you are managing your credit responsibly, signifying a low risk of missing future payments. A good credit history can unlock the best terms for your home loan and speed up your path towards closing.
Don’t: Miss Payments or Get Overdrawn on Your Bank Accounts
Accounts in the red are a serious problem. Missing a payment by 30 days or more creates a negative mark on your credit which could jeopardize final approval, while overdrawn accounts are disqualified from consideration on your mortgage application. Make sure all your accounts are current and in good standing.
Do: Organize Important Documents for Review
The mortgage process requires lots of paperwork. Some of the documents you will need to provide your Mortgage Loan Officer and underwriters include:
- Two months of all your bank statements, including investing and retirement accounts
- Two years of income-related documents (W2s and 1099s) and federal tax returns
- Recent pay stubs to prove your current income
Lenders may also ask for letters from your employer verifying your work status and proof of homeowners insurance for any other property you own. Organizing all your documents ahead of time can help you get through the process easier.
Do: Keep in Touch with Your Mortgage Loan Officer with Questions and Concerns
Your Mortgage Loan Officer is your advocate and is ready to collaborate with you throughout the process. If you have any questions about your mortgage application – ranging from what paperwork is needed to how to handle job changes during underwriting – don’t be afraid to contact your Mortgage Loan Officer. They will be happy to get back to you with the answers to all your questions.
While the mortgage process can feel arduous, working with a seasoned and compassionate Mortgage Loan Officer can make all the difference. When you’re ready to take the next step towards home ownership, the team at SESLOC is here to help! Contact us today to get started on the process of home ownership.
