Essential Dos and Don'ts for Keeping Your Mortgage on Track
Navigating the mortgage process can be difficult, especially once you are under contract. Here's a checklist of important do's and don'ts to guarantee a seamless transition to homeownership.
The Do's
Provide pay stubs, bank statements, and identification.
Ensure that you swiftly supply your lender with all needed evidence, such as current pay stubs, bank statements, and identification. These documents are required to verify your financial condition and move the mortgage process forward.
Inform Your Lender About Travel Plans.
If you want to travel throughout the mortgage process, contact your lender in advance. This helps to eliminate communication delays and ensures that the relevant paperwork is signed smoothly.
Report employment changes immediately.
Any changes in your employment status, such as a new job or a pay increase, should be notified to your lender right away. This information is critical for your loan approval and may influence your mortgage terms.
Inform Your Lender about Gift Funds
If you are receiving gift monies to help with your down payment or closing fees, notify your lender. Proper documentation of gift monies is required to meet underwriting standards.
Submit Earnest Money Deposit Promptly.
Once you've signed the contract, make sure you submit your earnest money deposit right away. This deposit demonstrates to the seller that you are serious about purchasing the home and is an important step in completing the deal.
The Don'ts
Do not open or close credit accounts.
Avoid making any changes to your credit accounts, such as creating new cards or closing current ones. Such acts can have a negative influence on your credit score and hinder the mortgage approval process.
Do not move money without a paper trail.
If you need to transfer big amounts of money, be sure there is a clear paper trail. Unexplained financial transfers can raise red flags with your lender, potentially delaying or jeopardizing your mortgage approval.
Do not skip or make late payments.
It is critical to maintain a consistent payment history throughout the mortgage procedure. Skipping or late payments on existing loans or credit cards can have a substantial negative impact on your credit score and mortgage eligibility.
Do not make major purchases, such as a new car.
Avoid making significant expenditures, such as a new car or pricey furniture, until your mortgage is closed. These purchases can effect your debt-to-income ratio and loan approval.
Do not change jobs without notifying your lender.
Changing jobs during the mortgage process can be complicated, particularly if it affects your financial stability. Before making any work changes, always consult with your lender.
Whether you're a first-time buyer or an experienced homeowner, this video will arm you with the insider knowledge to navigate the home buying journey with confidence. Subscribe now to stay ahead of the curve and make your dream home a reality.
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