At City Creek Mortgage, we’re here to help with every step of the process if you are looking to purchase a home. From your preliminary mortgage research up to closing day itself, plus any refinancing needs down the line, our mortgage professionals will help you understand and move through the stages of acquiring a mortgage and getting into the home of your dreams.
This involves steering you in the right direction, but it also involves the flip side of this: Helping you avoid the pitfalls that can crop up during this process and derail your efforts. In this two-part blog series, we’ll go over the do’s and don’ts for the mortgage process – here’s part one, on the “do” areas you want to emphasize as you get started.
Check and Understand Your Credit
One of the first steps to any mortgage process involves checking your credit score, which has several factors that go into the weighting and final calculation of your number. Not only should you know what your score is, as this plays a big role in the kinds of mortgage programs you qualify for, you should also work to understand why your score is the way it is – particularly if it’s lower than you expected.
You should also be checking your credit to see if there are any inaccuracies from credit bureaus. These aren’t common, but they do happen from time to time and it’s your right to contact the credit agency and have the issue resolved.
Pre-approval is a process where you submit financial information to a third party, who assesses your situation and gives you a detailed report on the kinds of loans and programs you can expect to qualify for. Pre-approval is a fantastic way to get a head start on the process, and it also shows sellers you’re serious about things and have already obtained proof of your purchasing power. People with pre-approval in hand as they begin their home search can generally make stronger offers than those without.
Keep Solid Records
Lenders require documentation for your income, employment, debt and a few other possible areas. If your records are in good order, including tax documents, this will be simpler for everyone involved. Lenders should be able to easily track how money comes in and out of your accounts to get a good picture of your finances.
Maintain Stable Financial Indicators
Lenders and sellers alike want to see stability in areas like employment and income, so do your best to keep these consistent near the time of a mortgage application. If you were considering quitting your job in the near future, for instance, perhaps hold off temporarily until after closing – even if this move won’t negatively impact you financially. The exception here would be any positive change in this area, such as getting a raise or a promotion, as these make you look better to lenders.
Make a Savings Plan
This is a great time to be saving money, both for your down payment and for important closing costs. Try to avoid major purchases you don’t absolutely need, and focus on a separate account where you save as much as possible.
For more on the do’s and don’ts of the mortgage process, or to learn about any of our home loan services, speak to the friendly staff at City Creek Mortgage today.