Mortgage News

Are you getting ready to apply for a mortgage? Though this is an exciting time as you’re getting ready to take the big step of purchasing and moving into a new house, making sure that you complete your mortgage application the right way may be a pain point. It is for most, especially for first-time buyers.

If you want to secure the perfect mortgage and you’re not sure how to get started, the pointers below may help. Keep reading to learn some important “dos” and “don’ts” during the mortgage application process.

1. Don’t: Make Major Purchases

Depending on how much money you have to spend, this rule of thumb has some wiggle room. In general, though, you want to avoid making any very large purchases while you’re waiting on mortgage loan application approval.

When your lender is trying to decide if you’re a trustworthy client, they’re going to take a look into your finances. If, even for a short time, your spending to income ratio isn’t promising, they may not be inclined to approve your application.

Save the large purchases for after your approval.

2. Do: Keep Up With Current Payments

While you’re waiting on approval from your lender, you still need to make sure that you’re keeping up with your current rent, mortgage, or any other loans or bills that you’re responsible for.

Your lender wants to know that you’re reliable and that you pay on time. If you have a lapse in payment while you’re too excited about your new mortgage, your lender will see that as irresponsibility and financial risk.

3. Don’t: Change Jobs (If You Can Help It)

This one is tricky. Many people get a mortgage when they’re getting ready to move to a new area, meaning that their jobs are going to change. If you can help it, though, try not to change jobs until after you’re approved.

When your lender asks for your job history, they want to see consistency. Someone who goes for long periods between jobs or who jumps from job to job may not seem like they have reliable income, even if they do.

Lenders understand that there are extenuating circumstances and they may be willing to accept proof of income in a way that doesn’t rely on a consistent job, but keep this in mind.

4. Do: Communicate

It’s normal (and good) to ask questions about your mortgage application. It’s a complicated process, especially if you’ve never done it before. Lenders want to help you and can walk you through the process to make it less stressful.

For example, if you’re someone who doesn’t have a consistent job or you’re a freelancer, you can discuss proof of income with your lender in a way that doesn’t require traditional paystubs.

When in doubt, talk to your lender. Keeping an open channel of communication is key.

Good Luck with Your Mortgage Application

The mortgage application process can be tricky, but when you take the right steps you can simplify it as much as possible and be on your way to approval. Get your finances in order, prove that you’re a reliable client, and don’t be afraid to ask questions.

Are you ready to fill out an application? We make it easy to apply for a loan with our online mortgage application. Apply today or give us a call (704) 412-9131 to go over any details you’d like to discuss. We pride ourselves in simplifying the mortgage process for our clients and walking them through the process, from start to finish.