Do’s and Don’ts of the Mortgage Process
Isn’t shopping for a home exciting? We know it can be a stressful process, but keep in mind this is also one of the biggest, most exciting investments you are going to make in your life. While you may be thinking about cathedral ceilings or dreaming about that master bedroom with an en-suite bathroom, there are other important things you should be thinking about, too. If you want to avoid any roadblocks on your journey to homeownership, make sure you follow our Koutsos Ten Commandments.
First, we are going to discuss five things you don’t want to do during the mortgage process:
- This one is a no brainer, but do not lie on your mortgage application. When you sign a mortgage application, you’re certifying the information you’ve provided is accurate to the best of your knowledge. Lying on your mortgage application can have serious, even legal ramifications.
- Don’t incur any new debt. Don’t apply for a new car loan, don’t open a new credit card, don’t purchase a boat, don’t finance furniture, or co-sign a loan with someone.
- Leave your bank account alone. Don’t change banks, move money from one bank to another, charge excessively, or make any large deposits into your bank account more than $1,000. That check from Grammy can wait to be deposited!
- Do not change or quit your job. This would severely impact your ability to qualify for a loan.
- Don’t pay off your debt, consolidate your debt, close credit card accounts, max out credit cards, or dispute anything on your credit report. One of the things we do prior to closing is check your credit card balances, and if your balance (and more than likely also your payment) has gone up, it will affect your ability to qualify for a loan.
Now, let’s discuss the five things you do want to do during the mortgage process:
- Make your payments on time. Do not, I repeat, do not be late on payments! If you have a mortgage or a credit card, make sure you continue to make those payments and you’ll be good to go.
- Keep all paperwork. Do not dispose of pay stubs, bank statements, or tax paperwork. This leads us up to the next step about documentation.
- Do provide us with all your loan documentation in a timely manner. There are going to be times when we request information from you, and the sooner we can get it, the better.
- Do let us know if you plan to change where your down payment is coming from. Again, the sooner we have that information, the sooner we can prepare to make sure we close on time and request any missing documentation.
- Do let us know if you plan to travel or go out of town. If you are going to be out of the country, just let us know!
If you follow these tips, the mortgage process should be smooth sailing. Please do not hesitate to contact The Koutsos Team with any questions!