Previous posts have centered on “how-to’s” for sellers. Well, buyers have just as many rules! For most buyers, the first step is to get pre-approved for a mortgage. It is imperative to know just how much home you can buy, and exactly what your monthly payment will be, before you start your home search. My “no-surprises” mantra applies to buyers as well as sellers.
When applying for a mortgage loan, there are definite do’s and don’ts to keep in mind. In general, you don’t want to make any changes to your financial picture until after you’ve moved into your new home.
Here are ten rules to keep in mind while navigating the process:
- Do not change jobs, become self-employed or quit your job.
- Do not buy a car, truck or other large purchase that requires monthly payments.
- Do not use credit cards excessively or let your payments fall behind.
- Do not spend money that you have set aside for closing costs or down payments.
- If refinancing, do not stop making your current mortgage payments.
- Do not originate any new inquiries into your credit.
- Do not make large deposits to your checking or savings accounts without first checking with your loan officer.
- Do not change bank accounts.
- Do not co-sign a loan for anyone.
- DO make sure the loan application is completed fully and accurately, and provide your loan officer with any requested information promptly.
Each of these rules has been violated by a borrower at one time or another, resulting in delays or outright denial of the loan. Don’t let this happen to you. And if you are looking for a reputable lender, contact me at 707.537.2308 or dbyrne@fhallen.com and I’ll provide you with the names of some good ones.
Posted by:
Deborah Byrne
Contact Us
