9 Mortgage Tips to Avoid Common Mistakes and Get a Mortgage
The mortgage process can be complicated, with numerous twists and turns to manage. But it doesn’t have to be frightening. With a Guardian Mortgage professional on your side, you’ll have an advocate to help you every step of the journey.
We are here to help you with your house purchasing experience, whether you are just thinking about it or actively looking. Konni Williams of Jen Guidry’s(Opens in a new window) San Antonio team recently offered her top Dos and Don’ts for avoiding common mortgage blunders.
As you go through the home-buying process, these recommendations will save you time, frustration, and possibly sorrow. By keeping them in mind, you will be in a better position to obtain a house mortgage loan and rapidly purchase your new home.
101 on the Mortgage Process
Understanding the mortgage procedure is the first step in avoiding mortgage blunders. The mortgage lending procedure normally consists of seven steps (Opens in a new window). These steps are as follows:
Pre-Approval: Before looking for a property, it is a good idea to get pre-approved for a mortgage. This communicates to sellers that you are a serious buyer, giving you an advantage in a competitive housing market. It also provides you confidence that you can afford the homes you’re looking at.
Review and Selection of Loan Options: Your mortgage company will examine your income, assets, and credit history to determine your ability to repay a loan. Once accepted, your loan originator will give you with financing options such as conventional loans, VA loans, FHA loans, and other loan types that you may be eligible for. They will also give you options for your payment schedule. These are commonly 30 years, 20 years, and 15 years. Your loan specialist will lock in your mortgage interest rate once you’ve selected the right financing for you.
Loan Processing: Your loan originator will verify employment, arrange a residential appraisal to validate house value, and seek title work from the title company when processing your loan. In addition, they will gather further documentation and insurance paperwork.
Underwriting: At this stage, the mortgage firm examines a range of information gathered to decide whether or not the loan presents an acceptable degree of risk. The answer could be affirmative, no, or further information is required.
Closing Documentation: At this time, your loan file is reviewed for quality assurance prior to closing. During this step, your loan team ensures that everything is in order for your loan closing.
Loan Closing: You’ve arrived! You’ll meet with your loan originator and a member of the title company at this phase to review and sign loan documents and pay any closing expenses. Additional payments will be transferred to the title firm as well.
Loan Servicing: While you make your mortgage payments, your mortgage company will handle the administrative components of your loan.
Now that you have a better understanding of the mortgage process, let’s work together to prevent typical mortgage blunders that occur during the mortgage loan process. Konni recommends the following Dos for a smoother loan transaction.
Dos and Don'ts for Avoiding Common Mortgage Mistakes
Make sure your funds are in order.
To provide your loan team with everything they need to serve you, make sure your documentation(Opens in a new window) is detailed, accurate, and complete. The paperwork required varies depending on your mortgage lender, but it commonly includes:
Make sure your funds are in order.
To provide your loan team with everything they need to serve you, make sure your documentation(Opens in a new window) is detailed, accurate, and complete. The paperwork required varies depending on your mortgage lender, but it commonly includes:
Application for a Loan
W2, pay stubs, tax returns, alimony or child support paperwork are all examples of financial verification documentation.
Documentation of assets and debts: bank statements, investment accounts, credit report
Respond as soon as possible.
When working with your loan team, make every effort to be as responsive as possible. If you can react within 24 hours, your team will be able to keep moving forward and close your loan on schedule. The longer you take to answer, the more time your staff wastes waiting to get to work!
Keep your existing job during the loan process.
If you want to change careers, wait until your debt is paid off before starting your future job. Your job and the income it provides are important factors in the mortgage process. Changes in your job status, particularly throughout the loan approval and closing process, might have an influence on your loan’s closing date and possibly your ability to close. Of course, keeping your current job during the loan process is not always possible. Notify your loan team as soon as your work situation changes.
Please ask questions.
This is possibly the most crucial thing you can do! Throughout the process, your Guardian Mortgage loan originator will do everything possible to make everything clear. Our goal is for you to be completely satisfied with your loan and thoroughly informed about the procedure. However, if something is unclear, do not be afraid to approach your team for clarification. We’re here to assist you.
Now that we’ve covered the dos and don’ts of acquiring a mortgage, let’s look at some typical blunders and how to avoid them.
Don'ts to Avoid Common Mortgage Errors
Don’t wait until you’ve found the ideal home to apply.
Apply for pre-qualification when you know you’re ready to begin looking, not after you’re “done” looking. When you are preapproved for the type/price of home you want, you will be in a better position with the seller and will avoid potential grief. You’ll be behind if you don’t go through the preapproval procedure, and you might miss out on your dream home.
Do not submit documents that are incomplete or photographs of documents.
In today’s property market, time is of the importance. Don’t allow missing documents stymie your loan application. Before delivering your documentation to your loan originator, take the time to double-check that everything is in order. Similarly, ensure that you provide your loan originator with all of the necessary documentation. Document photos, for example, are often useless.
Make no substantial financial deposits or presents without first consulting with your loan originator. To understand why your bank accounts are shifting, your loan team requires a paper trail of all transactions. Their purpose is to confirm that your income is real and that you will be able to pay off your mortgage bills. As a result, a significant shift in your financial situation, whether positive or negative, may raise a warning signal. Read the Realty Times article(Opens in a new window) about cash deposits when applying for a mortgage for additional details.
Do not apply for other types of credit before, during, or soon after your loan application. Multiple credit inquiries(Opens in a new window) in a short period of time might damage your credit score and cost you money. You could save thousands of dollars if you can avoid double-dipping on mortgage and credit card queries.
Pay no heed to marketing calls that offer mortgage “offers.” Running your credit score, unfortunately, results in a bombardment of calls from organizations seeking to sell you a mortgage or, worse, steal your information. Don’t be alarmed by these phone calls. Know when they’ll arrive and how to avoid them.
While some of the details behind the Guidry team’s advise are unique to them, the broad concepts are sound guidance for anyone looking for a loan. Watch Konni’s video (Opens in a new window) to hear her discuss her list of Dos and Don’ts in her own words.
Buying your next home may be both exciting and frustrating. This is especially important in the current hard environment. Always remember that information is power. For a smoother journey, follow these suggestions on the top Dos and Don’ts for avoiding common mortgage mistakes and educate yourself on every aspect of the house buying process.
