Buying a home is a big decision, and some parts of the process are confusing to homebuyers even if they have purchased a house before. Wyndham Capital Mortgage offers professional support to help make the process smoother and less stressful. If you’re considering becoming a homeowner, or if you’re applying for a mortgage soon, be sure to take notes because class is in session.
1. Have Financial Statements On Hand
Though the amount of the down payment needed for a home loan varies, you should have proof readily available that you have the money to secure your loan. Some lenders request financial statements going back three months. This work also could be a precursor to getting pre-approved. In many cases a pre-approval helps in the home search so look to get a mortgage pre-approval letter from your lender, which will strengthen your offer
2. Prepare for the Long Haul
It’s not uncommon for it to take as many as 45 days or longer for a home loan to be fully approved, and that’s with the most favorable conditions. Make sure your loan application is complete to reduce the chances of delays caused by needing to resubmit information or submit a piece of information you might have left out of your original application.
3. Ask Questions
While information on the mortgage process is easily accessed online, it can still be difficult to fully understand, so don’t hesitate to ask your loan officer questions in addition to doing your own research.
“When making a financial decision of this magnitude, there are no silly questions. Obtaining a mortgage is one of the biggest financial transactions of an individual’s life. It is critical to make sure you are not going into the process without a good understanding of what could happen and why. Before having a conversation with a loan officer or a real estate agent, research what to expect from the mortgage process. When you have a basic idea, then rely on a mortgage professional to help guide you through the process.”
4. Maintain Employment
Even if you have substantial savings for a down payment and subsequent mortgage payments, not being currently employed could put the entire process in jeopardy and turn your approval into rejection. Let’s 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. But, you proceed with the process and apply for a mortgage, and are shocked when you’re not approved. Why? Lenders are required to verify borrowers have a current and stable source of income to pay their mortgage and any other financial obligations. Even though you have most of the money for your home on hand, the lender could speculate that might change.
5. Keep Records of Your Correspondence
In addition to communicating with your loan officer through a portal and/or email whenever possible, you should keep notes from other discussions. The dedicated portal helps you keep track of the process, and it gives you access to your loan documentation whenever you need it.
Not every mortgage process is the same, but keeping these five things in mind may help you have a smoother loan process. Do you have more questions about the loan process? Let us help!