Ten Commandments for Getting the Mortgage You Want

Posted Tuesday, March 13, 2018 by Courtney Dennis

 

If you’re in the market for a new home, make things as easy as possible for yourself by following a few basic rules of thumb …

Do:

  1. Check your credit report, correct any errors you find, pay down your debts if at all possible, and continue to pay all your bills on time.
  2. Gather financial information such as two years of federal tax returns (plus business tax returns if you are self-employed), two years of W-2 forms, two to three months of pay stubs and bank statements, and summaries of all assets and debts.
  3. Determine the exact source and amount of your down payment. Talk to your lender about the best timing for liquidating funds associated with stocks, retirement accounts, etc.
  4. Talk to your lender about being pre-qualified or pre-approved for a loan, so you know exactly what price range fits your finances.
  5. Respond as quickly as possible to your lender during the underwriting process, to ensure that escrow and closing remain on schedule.

Do Not:

  1. Deposit large sums of money into your accounts in the three months before you apply for a home loan, or during the home loan process.
  2. Transfer money from account to account, making it difficult for an underwriter to assess your financial situation.
  3. Take out cash advances on credit cards, make major credit card purchases, or apply for new credit (including debt consolidation loans/credit cards) during the purchase process.
  4. Co-sign on any new loans for friends or family.
  5. Change jobs during the course of the purchase period.
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