The Mortgage Process: Dos & Don’ts When Buying A Home
We make your mortgage process smoother. For best results, follow these helpful tips:
DO:
• Ask questions and be informed.
• Provide copies of all requested documentation in a timely fashion.
• Keep your file current with the most recent copies of your pay stubs and bank statements.
• Continue to make all payments on credit cards, loans, and rental/mortgage accounts as agreed.
• Maintain a paper trail on everything connected to your application. A good place to do this is the document folder provided at application.
• Provide a copy of your pre-qualification, pre-approval or commitment letter, and your Mortgage Loan Originator’s contact information to your agent.
• Be cautious of homes needing TLC or ‘fixer-uppers.’
• Ask your agent if a property is located in a flood zone. You may need to obstain flood insurance as part of your loan.
• Consider the merits of having home inspections conducted as part of your purchase contract.
• Consider negotiating a homebuyer warranty as part of your purchase offer.
• Obtain a legible and fully executed copy of your purchase contract, signed by all parties.
• Make a copy of your escrow deposit check provided with your contract offer, and provide evidence that it has been cashed by the closing agent.
• Arrange for a satisfactory homeowner’s insurance coverage binder on your home effective the date of your closing. This is normally done after receipt of the appraisal as it may influence the premium quote.
DON’T:
• Apply for or take out new credit cards, auto or personal loans or have new credit inquiries in your credit bureau file during the course of your loan process and closing.
• Make any large, unverifiable and undocumented deposits or withdrawals to your checking or savings accounts.
• Quit or change employment.
• Write any checks if you have insufficient funds.
• Take any cash advances on credit cards to pay for your escrow deposit.
• Withhold payments to accounts to be paid off in closing without first discussing it with your Mortgage Loan Originator.
• Make a “contract purchase offer” for an amount higher than your pre-qualification or pre-approved amount without first discussing the details with your Mortgage Loan Originator.
• Include the seller’s personal property (furniture, machinery, etc.) in the purchase contract as only real estate is permissible.
• And most of all, don’t hesitate to call Howard Hanna Mortgage Services if you have any questions or concerns at all during the loan process! We are here to help!
