List Of Do’s And Don’ts For Soon-To-Be Home Buyers

For anyone who is in the market to buy a home or soon will be, finding the right property is typically only half of the battle!

The other half, unless one is paying cash, is applying for a mortgage and then fighting the battle to ultimately be approved.

In the pre-financial crisis world qualifying for a mortgage was not a particularly difficult process as lenders bent over backwards to make loans that they would package and then sell-off to investors around the world. Often it was simply ‘stating’ what it was that the underwriters wanted to hear.

Post-crisis of course the game has changed and the approval process has become much more difficult to navigate through.

So that said, what is a potential borrower to do? And, by the same token, what should they absolutely not be doing?

List Of Do’s And Don’t For Mortgage Applicants!

DO’s:

DO make sure you pay all of your bills on time. Any late payments in your history must be explained. And recent late payments damage your scores more than blemishes from many years ago.

DO be cognizant of the amount of debt you carry. Lower debt means lower payments, which makes it easier for you to qualify for a mortgage.

DO be discerning when allowing a lender to run your credit. A few inquiries won’t hurt. However, dozens of inquiries over a few-month period will likely have an adverse effect on your credit scores!

DO save all of your financial documents. Your lender will require your most recent four weeks’ of paystubs, most recent two months’ bank statements (including ALL pages), and most recent two years’ federal tax returns. It’s possible your lender will require updated documents throughout your transaction as well.

DO provide ALL of the documents your lender requests, when they’re requested. A superior Loan Originator knows what to ask for up front and will request everything at once instead of bleeding you for paperwork throughout your transaction. And when requested, please provide all requested paperwork promptly!

DO communicate with your lender. If they contact you, there’s probably a good reason. Return their call!

DO inform your lender of any and all employment changes that may take place during the course of your transaction – no matter how insignificant they may seem! A new job, a change in title, or a change in pay rate or type can have significant consequences!