The Mortgage Do’s and Don’ts
If you’re a home buyer, the internet contains an overwhelming amount of information meant to help you. It can be difficult to sift through everything and figure out what to focus on. So we are going to bombard you with even more information!! Kidding. But we do want to help make things easier.
The best piece of advice that we can give you when you’re embarking on the mortgage process is to work with a local lender or mortgage broker that you can trust. You want someone who you can get a hold of and build a relationship with, not some website or 1-800 number.
Working with a local, reputable lender can make your process more enjoyable and more successful. It can also set you up for success when making an offer. The right lender will make sure you know all of your options, and will explain all of your numbers. If you’re not quite ready to buy, the right lender can help you take the steps to get ready. Using a reputable, local lender can also help your offer to be viewed favorably by a home seller.
Once you’ve selected your reputable, local lender and you are embarking on the home buying process, here are some do’s and don’ts for you.
10 Commandments of Loans
Do not change jobs, become self employed, or quit your job
Do not buy a car, truck or van… unless you plan on living in it
Do not use credit cards excessively or let your accounts fall behind
Do not spend the money you have set aside for closing
Do not omit debts or liabilities from your mortgage application
Do not go out and by new furniture for your new home
Do not originate any inquiries into your credit
Do not make large deposits
Do not change bank accounts
Do not co-sign a loan for anyone
There are circumstances where you may be able to one or more of the above, but should maintain clear and open communication with your lender prior to making any changes. A number of mistakes can throw off the delicate debt-to-income balance while waiting for your loan to be processed.
