Things you should do
We all know that getting a mortgage is a major decision, with lots of steps involved. Since getting a mortgage requires that you show your creditworthiness and financial stability, here are a few steps you can take to position yourself as a good candidate for a mortgage:
- Do prepare your documents. Make sure you have ready access to several months (and in some cases, years) of:
- Pay stubs
- Bank statements
- W-2s and/or 1099s
- Tax returns
- Do keep up on all your credit payments: vehicle, credit cards, utilities, student loans.
- Do stay at your current job, since reliable income is a big part of your qualification.
- Do try to avoid large deposits. If you receive a large deposit, make sure you can track its source and purpose.
- Do talk to your mortgage loan officer before making a large purchases of any kind (car, furniture, etc). Doing so could impact your loan approval.
What NOT to do
Here are the most common no-nos that you need to avoid to ensure your financing goes smoothly.
- Don’t apply for credit such as a new credit card, car loan, or financing for furniture or appliances.
- Don’t make major purchases – now is not the time to treat yourself to a new boat.
- Don’t liquidate funds and keep your investment funds invested.
- Don’t switch jobs. Stability is important to your creditworthiness.
Keeping your credit score and your finances stable as you go through the loan application process is critical to securing your financing quickly and smoothly. If you have questions about any of these tips or other mortgage-related topics, or if you’re ready to apply, contact one of our Mortgage Loan Officers today!
