Six Dos and Don'ts of the Mortgage Process

Whether you want to purchase a house or refinance your existing mortgage loan in Hudson and Stillwater, have as much information as possible for the mortgage process. Knowing its dos and don'ts enables you to avoid common pitfalls and get a smooth loan transaction with your bank in Hudson, WI, and Stillwater, MN. Use them to take the correct steps towards getting your mortgage loan.

Six Dos and Don'ts of the Mortgage Process

1)     Do: Get pre-approved for a home loan

          Don't: Shop for houses without knowing your financial limits.

Shopping for a house without knowing your affordability limit might land you in a fix when your dream home falls outside your price range. A pre-approved home loan from your bank in Stillwater, MN, or Hudson, WI, assures your affordability and informs lenders about your verified income and assets. With the pre-approved letter, you can make a stronger, more competitive offer for your choice of home.

2)     Do: Consult homebuying professionals

          Don't: Be a mortgage advisor yourself 

In a loan process, you can consult many homebuying professionals like loan officers, real estate agents, home inspectors, etc. Each of these professionals has a specific set of skills that assist you in your mortgage for buying homes in Stillwater and Hudson. Don't think you are alone in the process. Take the advice of homebuying professionals to reach your end goal fruitfully.

3)     Do: Understand your overall credit picture

     Don't: Open/Close any credit line without discussing it with a credit professional

Before you begin a mortgage process in Stillwater or Hudson, get a clear understanding of your credit score. If you don't know where you stand, ask each of the three major credit reporting bureaus for a free copy of your credit report. If you find any discrepancy in the report, immediately contact the credit agency to resolve the issue. Avoid activities that impact your credit score like

 

●     opening or closing a credit line

●     co-signing on loans

●     making major purchases with credit cards

 

Your bank in Stillwater, MN, and Hudson,WI, raises red flags when you initiate a mortgage process. Discuss with a credit professional before taking any such action.

4)     Do: Communicate openly

          Don't: Delay responding to your loan team 

During a mortgage process, your mortgage advisor will keep you updated about the developments in Stillwater or Hudson. They might also ask for additional documentation to approve your mortgage. Any delay in response or non-communication can hamper your mortgage process. Therefore, always communicate openly and provide all necessary documentation on time to your loan advisor.

5)     Do: Maintain your current employment

          Don't: Make big purchases

Any bank in Stillwater, MN, or Hudson, WI, will consider stability as a factor to approve your mortgage loan process. Therefore, keep your job and income steady while applying for a mortgage. Additionally, avoid the common pitfall of making high-value purchases during the mortgage process, like buying new furniture, car, etc. It affects your credit score directly.

6)     Do: Have a paper trail of fund transactions of your account

          Don't: Deposit a large sum of cash in your bank other than your paycheck 

Mortgage lenders need complete information about your fund's whereabouts. A clear paper trail of funds in/out of your account shows positivity for them to move ahead with the mortgage process. Large cash deposits or electronic transfers in your account are untraceable and raise doubts about your financial position, hampering your mortgage process.

Conclusion

Follow these dos and don'ts during your mortgage loan process in Stillwater and Hudson to qualify successfully for it. Whether you want a mortgage to purchase your first home, second home, or refinance your current loans, always consult a mortgage advisor for best results.