Do: Get pre-approved
Don’t: Go house shopping without knowing your affordability
It is a critical step to get preapproved by your financial institution in order to identify the exact amount of your affordability and type of houses that fit within the budget. Getting pre-approved helps you determining homes within your budget and moreover if stumbling upon an ideal house, submitting your preapproved documents give you a strong preference over the house.
Do: Work alongside home purchasing professionals
Don’t: Assume you have to do it by yourself
Tend to work alongside with professionals in such field such as real estate agents, land inspectors, loan officers, etc. when purchasing your desired home as they fluent in such procedures and will help you attain your desired home without any hindrances in the loan process. Do not assume you have to do it yourself, as it can be a spell for disaster, especially when skilled and trained individuals exist.
Do: Understand your credit
Don’t: Close or open credit lines without prior consultation by a credit professional
It is recommended to get your overall credit picture evaluated by a professional before going ahead on the mortgage process. Evaluating your creditworthiness enables you to determine your financial position and identify any inaccuracies if stumbled upon to seek solutions for it immediately. Remember to stay away and avoiding making any substantial purchases using credit, signing on loans or opening new credit lines before and during the mortgage or loan availing procedure.
Do: Maintain lines of communication open at all times
Don’t: Delay your response to your loan team
When going through the loan process, you can expect to hear from your mortgage advisor at each step of the process demanding submission of necessary documentation. The hidden but underrated secret to attaining loans on time is submitting necessary documentation as and when the lender requires without any delay.
Do: Formulate a savings plan
Don’t: Make significant purchases
A common mistake observed when availing a loan is making substantial unwanted purchases which as a result negatively affect their creditworthiness and often time lead to rejection of loan. However, you can redress this by avoiding making any significant purchases that can jeopardize your solvency. Instead, formulate a savings plan as you will need funds to secure necessary payments such as closing costs or down payment.
Do: Maintain your current job and income
Don’t: Make dramatic changes such as quitting or changing your job
A severe aspect taken into consideration by financial institutions when granting a loan is the stability of income of the individual. Maintaining such stability can smoothen your loan attainment process, whereas making dramatic changes such as quitting or changing which affect stability can lead to delay and even denial of the loan.
Do: Formulate a paper trail of funds coming in and out of your account
Don’t: Make large cash deposits into your account other than your salary
Financial institutions will require you to submit necessary documentation of your account showing accountable transfers and money coming in and going out. Bear in mind to avoid making large transactions which cannot be sourced as it can affect your loan process.