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If you are like most people, one of the most intimidating parts of buying a home may be applying for a mortgage. But, that doesn’t have to be the case, so long as you plan ahead and prepare.
We asked Loan Originator, Kristine Kennedy, for some tips on making the mortgage process as painless as possible, and she shared some great advice!
“There are really only four main steps to mortgage approval, and each step requires you to be as organized and prompt as possible, in order to keep the process moving as swiftly as possible. When you consider that the average mortgage process can take up to 45 days, you realize how every minute counts in order to close on time.”
Kristine outlined the 4 Steps for us:
- Application: This includes determining your qualifications, selecting the right mortgage program, finding the right home, and prepare and submit your loan application for processing.
- Processing: This is the time when your home is appraised, your credit report run, and all documents are collected to verify employment, rent, tax returns, etc. These items are then submitted to underwriting for review and approval.
- Approval: When your documentation and loan are reviewed and approved, a Conditional Approval is made so you can provide any additional documents before a Final Loan Approval is in place.
- Closing: A Closing Disclosure is completed by your mortgage loan closer, providing you with the final settlement figures, and total funds needed for closing. You must acknowledge receipt of the Disclosure document within 3 business days prior to closing.
“To be approved for a mortgage, all your financials must be in good standing,” said Kristine. Here are some Do’s and Don’ts to follow so your mortgage application can go smoothly:
- Do continue making your mortgage or rent payments.
- Do stay current on all existing accounts.
- Do keep working at your current employment.
- Don’t change jobs
- Don’t make any deposits into your account tat are non-payroll
- Don’t transfer any balances from one account to another
- Don’t make any major purchases (car, boat, jewelry, appliances, etc.)
- Don’t apply for any NEW credit (even if pre-approved)
- Don’t open a new credit card.
- Don’t pay off collections without discussing with us first.
- Don’t close any credit card accounts.
- Don’t max out or over charge your credit card accounts.
- Don’t consolidate your debts into 1 or 2 credit accounts
- Don’t take out a new loan
Applying for a mortgage doesn’t have to be scary, just be prepared and work with a loan originator who will help you through the process.