As a first-time home buyer, preparing to apply for a mortgage loan can be overwhelming, but at Betenbough Homes we strive to give you a home buying experience unlike any other. For years, we’ve partnered with some of the most trusted mortgage loan officers to ensure your home loan process goes smoothly. Our preferred lenders have several years of experience, so we asked them for a few pointers on getting approved for a home loan.
Below are a few tips from the experts!
- Home buyers should gather the requesting documentation and get it to the lender as quickly as possible. This expedites the process and results in a smoother transaction.
- Home buyers do not need to be nervous. The lender is on their side and want to make their deal work.
– Kay Kuhn, First United Mortgage
- Home buyers should not make large cash deposits without checking with their loan officer. Making large cash deposits is very hard to verify. Keep a paper trial of any deposits or bank transactions.
- Borrowers should not close out any credit cards when paying down or paying off balances. Closing out credit cards can lower your credit score(s).
– Adrianne Rendon, Primewest Mortgage
- Home buyers should continue to make all of your monthly payments on time. Any late payments or delinquent obligations could result in a decrease in your credit score affecting your ability to be approved for the mortgage.
- Home buyers should be aware that mortgage rates change daily. While you will be quoted a rate at the time of pre-approval, you will not be able to lock in a rate until 30-45 days out from the completion of your new home. While the majority of the time you will not see a significant adjustment to you rate, be aware that the rate is not always the same from the time of pre-approval to the time that your rate will actually be locked in.
- Provide documentation on all the funds that you will need to close on the new home. Gift funds from family members is an acceptable source of funds, but there will be additional documentation requested for the transfer of the funds, etc.
- Home buyers should be aware that with the construction of a new home, we do set up the taxes based on the expected value or your new home. This is highly dependent on the month that we close in so please be prepared for a possible increase in the funds that you might need at the time of closing if you close in the summer months for the amount of taxes that will be due on your new home.
- Home buyers should not incur any additional debt between the time of pre-approval and the closing on your new home. With the time that it takes to build your new home, we will need to re-pull your credit report and any new debt that you have incurred will need to be taken into consideration and added to your current monthly liabilities.
– Bob Rowten, City Bank Mortgage
Have more questions about preparing to apply for a home loan? Contact a preferred lender to schedule an appointment today!