Getting a mortgage can seem like a complicated task. You have to get approved for the amount, the house has to be approved and you have to go through the closing process, while still managing your financial situation. Although there are many steps in the process, certain activities can further complicate the paperwork. Here are a few helpful hints to make the process less complicated:
Keep Your Current Lifestyle
It is important to keep your financial life operating as usual during the closing process. For instance, any major life change, such as a new job, will slow down or perhaps stall the process. If you are planning a life change such as marriage or retirement, it is best to wait until after the loan process has been complete. Mortgage lenders will need to see a history of consistent income, as well as tax returns in order to approve the loan. It is also important to stay current on your accounts and pay them consistently. This includes rent, credit card payments, car loans or any other standard monthly payment. Lifestyle changes during the process could cause additional paperwork and will slow down the loan process.
Keep Your Credit Consistent
Making a major purchase such as a home might cause you to look at other parts of your financial portfolio. Even though it may seem like a good idea to get your finances in order, perhaps credit card consolidation or paying off debt, it is not always helpful in the mortgage process. When your credit is run during the approval process, that score and any open lines of credit are used to determine your loan approval. If you would consolidate a credit card, or transfer debt during the process, this will cause that credit history to change, which will in turn require additional time to close the loan. Other activities that could affect your credit score include a new store credit account, joining a new gym, getting a new cell phone, or anything else that would require a monthly payment. Best practices suggest that you wait until after the loan process has completed to make financial decisions which will affect your credit score.
Work With An Expert
Getting a mortgage loan is one of the biggest financial transactions in your lifetime. It is critical that you work with an expert to help you through the process. Your mortgage lender can provide assistance in making sure you get the proper rate for your situation and that you will be able to afford your home for years to come. They can also answer questions you may have as it pertains to the closing process, taxes, insurance and other aspects of the process of financing your home. Your mortgage lender is there to help you complete the transaction and secure the financing for you purchase.
If you have any questions or would like more information on the mortgage process click here or call 662-449-1296.