Applying for a mortgage and buying a home are two of the largest undertakings of a person’s life. Wyndham Capital Mortgage is here to offer five unique tips that are sure to make the process easier and less stressful, which is a huge advantage for the buyer, lender and seller. If you’re considering becoming a homeowner, or if you’re applying for a mortgage soon, be sure to take notes. Class is now in session.
5 Ways To Make The Loan Process Easier
1. Have Proof of Assets Ready at Hand
While the amount of the down payment needed for a home loan varies, you should most certainly have proof that you have the money readily available. In addition to knowing you have the money in your account when you apply for a home loan, lenders also commonly request two to three months’ worth of financial statements. If necessary, make plans to have your down payment shifted from one account to another at least three months before sitting down with a mortgage lender.
2. Prepare for the Long Haul
Because owning a home is such a monumental decision, it’s going to take time before you reach the finish line. It’s not uncommon for it to take as many as 45 days for a loan to be approved, and that’s with the most favorable conditions. Once you’ve penned your offer letter for the house you’ve got your sights set on, the next step is to get a mortgage pre-approval letter from your lender. Pre-approval letters go a long way in strengthening your offer and making you a better contender for the house of your dreams. Manage your expectations, and make sure you’ve triple checked your loan application letter to reduce the chances of needing to resubmit information or submit a piece of information you might have left out of your original application.
3. Don’t Be Afraid to Ask Questions
While information on the mortgage process is easily accessed online, you aren’t expected to qualify for a master’s degree in the industry before you apply for a mortgage. While you shouldn’t hesitate to ask your loan officer questions, it’s best to do the research yourself beforehand to see if you’re able to figure out the answer for yourself. If there’s anything you don’t understand after putting in the work, feel free to learn at the feet of a mortgage master. In addition to your loan officer, you can also ask your real estate agent questions. Cross-pollination is often the best way to learn rather than getting all of your information nutrition from a single source.
4. Don’t Quit Your Job
Say you’ve got 80 percent of the asking price of your dream home saved up and just need a small loan. Maybe you quit your job or plan on changing jobs very soon. You apply for a mortgage and are shocked when you’re turned down. Why? Even though you’ve got most of the money for you home now, that might all change a month into your mortgage. Lenders like to know borrowers have a current and stable source of income in order that they have a way to take care of their loan and any other financial obligations they have.
5. Keep Records of Your Correspondence
Besides communicating with your loan officer through a portal and/or email whenever possible, you should keep your correspondence well-recorded. This helps you keep track of what was promised, and it gives you easy access to your loan information. You also have what you need to compare the term you received at the beginning of the loan process with the term you get when you’re ready to sign. It’s not that you don’t trust your loan officer, just that you want to ensure everyone’s on the same page.
Not every mortgage process is the same, but keeping these five tips in mind is sure to improve your chances of receiving the keys to your new home. Do you have further questions about the loan process? Let us help!