The Mortgage Loan Process: The Good vs The Bad
Happy Monday everyone! This week will be dedicated to mortgages again, given it is our main service here, and we think it is very important for you to understand the correct process of acquiring a loan for your home, especially if you are new to it! Money is delicate, especially when so much of it is allocated to a property, and you don’t want to be making mistakes which will cost you more than you need.
Here are some things you need to AVOID doing when acquiring a mortgage.
Looking for a house when you don’t know how much you can afford. It is recommended you find something that is about 2 1/2 half more than your annual salary, but not an amount that will take forever to pay off.
Doing the search with no help. Realtors exist so that they can help you!
Disappear from your broker or consultant. Don’t let the process take more than two month when it can take 1 1/2.
Assume the home payments also include the property taxes. Taxes alone can cost about 2000$ a year.
Pay cash for anything concerning your home purchase. Unless you can track it, a lender needs to track all the money flow. Otherwise, your mortgage can get rejected.
Buy anything new that is expensive such as a car or furniture. The more debt you have, the less buying power.
Change jobs unless the loan has closed. Keep the stable income flowing.
Make large cash deposits into your bank account other than your paycheck. This may concern your lender, who will think you are getting money from other lenders.
Forget to do your own research about the whole process. The more you know, the better.
Take advice from anyone. A friend may be good, but professionals are there for a reason!
Here are the things you would be encouraged to DO!
As mentioned before and will be mentioned again; do get pre-approved!
Work with a professional. Their job is to help you facilitate the process and get a good deal.
Stay in contact with your loan officer; it helps all parties, and they know where their money is going as a lender.
Tax work; because there are purchase taxes.
Provide earnest money from your bank account, to keep the lenders satisfied.
Pay off debts on time, to help your score.
Document all money flow, as detailed as possible
Organize all these documents; it reduces stress.
Enjoy and good luck!