Thinking about diving into the world of mortgages? Congratulations! This exciting step towards securing your dream house can sometimes come with its share of hurdles. The nerve-wracking process of completing a mortgage application is a common concern, especially for those venturing into homeownership for the first time.
So, if you’re feeling a bit lost about where to start in order to land that perfect mortgage deal, fret not! Below, you’ll find a few dos and don’ts to keep in mind as you navigate through the mortgage application journey.
Do’s and Don’ts to Ace Your Mortgage Application
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Don’t: Splurge on Major Purchases
Hey, hold up on those extravagant shopping sprees, especially while you’re in the waiting room for your mortgage loan approval. Sure, it’s tempting to spend, but large purchases may raise eyebrows with your lender. They’re scrutinizing your financial habits, and a sudden splurge might send the wrong message.
Hold off on those big buys until after your application is approved.
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Do: Keep Your Current Payments Up to Date
Paying your rent, mortgage, bills, and loans on time is crucial. Your lender wants to see that you’re a responsible borrower who honors their financial obligations. Missing payments could potentially shake their confidence in your ability to handle a mortgage.
So, keep those payments current to showcase your reliability.
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Don’t: Job Hop (If You Can Avoid It)
It’s understandable that job changes might accompany a move, but if you can stick with your current job until after you get the mortgage approval, that might work in your favor. Lenders like to see stability in your income source, and frequent job changes can raise red flags.
Consistency in your employment history paints a positive picture for lenders.
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Do: Communicate Freely
Feeling confused or overwhelmed by the mortgage application process? It’s alright to reach out and ask questions. Lenders are there to guide you through the complexities and help ease your worries. If you have unique income situations like freelancing, discuss alternative proof of income options with your lender.
Stay open and connected with your lender to smoothen the path to approval.
Final Thoughts: Stay Informed and Take Your Time
The mortgage application process doesn’t have to be intimidating. By avoiding major purchases, maintaining your current payments, staying in your job if possible, and communicating openly with your lender, you’ll be on the right track toward securing your mortgage.
If you’re ready to begin the process, make sure you understand key mortgage terminology, especially if you’re working with a Mortgage Broker St Louis MO. They can walk you through each step and help you apply with confidence. Remember, the more informed you are, the smoother your journey to homeownership will be.
Good luck with your application, and if you have any questions, don’t hesitate to reach out to your lender!
