Before you seriously consider getting a mortgage, it’s important to have enough information on the mortgage process as possible. This way, you can avoid common pitfalls and take the right steps towards getting the loan.
The most critical part of getting a mortgage is preparation. This will help you have an understanding of the options available including the ones that best suit your financial situation. Below is a guide that contains the dos and don’ts when it comes to the mortgage process.
In the prequalification and preapproval stage
DO an initial mortgage prequalification. This will help you estimate how much and which type of a home you can afford so you can know the correct price range. It can be done via the online mortgage application where you provide documents to support your application.
DON’T look for a home until you are pre-approved. A common mistake that most people do is looking for a home they think they can afford instead of waiting to be pre-approved first.
Financial decision management
DO have a savings plan prepared to mitigate financial setbacks. Avoid unexpected costs by having a savings plan in place. The savings plan will help you pay for your deposit, mortgage repayments, and larger purchases on time.
DON’T make big and unplanned purchases. They could change your savings plan drastically. Avoid accumulating debts and applying for loans since they could affect your credit score and have a negative consequence on the mortgage application.
Credit score rating
DO think about improving your credit rating. Ruining your credit rating with more loans is the last thing you want to do. Seek to resolve any outstanding issues with your credit report.
DON’T compromise your credit rating score by taking out new lines of credit and making large purchases. It could kill your chances of being successful in your mortgage application.
DO ensure you are financially stable before purchasing a home. Financial stability is one of the prerequisites of a loan process. Showing that you have a stable income is a key factor in the loan approval process.
DON’T make drastic changes to your employment or lifestyle status. Changing your career or quitting your job before purchasing a home is a red flag and can cause a slowdown to your mortgage process. However, being promoted or starting a new business could affect your mortgage application positively.
Help from experts
DO work with professionals in the mortgage process. Hiring assistance and getting help ensures you don’t miss anything in your documents in the mortgage process. There are numerous online resources to help you in the process of acquiring your first home. If you need assistance from an expert, don’t hesitate to contact Belay Mortgage.
DON’T make the mistake of doing everything yourself. Many people think that they are saving money by doing everything on their own. They refuse to hire professionals to assist them in the mortgage application process. Most end up missing crucial documents, thereby lengthening their mortgage process. It proves more costly in the long run.
The mortgage process can be difficult and lengthy without proper guidance. But why worry when there are mortgage professionals ready to handle this for you? Contact Belay Mortgage for all your mortgage and financial needs