Pro Tips for Financing Your Home
Financing a home is a big deal! Whether you are purchasing a home or refinancing your current mortgage, there are some important things to keep in mind before and during the loan process to ensure that everything goes smoothly.
Here are Certainty Home Loans’ pro tips to keep in mind during the home loan process.
DON’T open new lines of credit
Opening or increasing any new credit accounts, such as credit cards, loans, or financing a car, can have a big impact on your ability to be approved for a mortgage. So whatever you do, do not go and finance that new furniture!
DON'T deposit large sums of cash
This may seem counter-intuitive but obtaining or depositing unusually large sums of money during the application process can throw up red flags during underwriting. Things like a bonus, an insurance settlement or a gift can require substantial documentation providing proof of the source of that deposit.
DO continue making timely debt payments (if applicable)
It’s important to keep paying your bills on time during the application process. Payment history is one of the biggest factors when it comes to your credit score. Your credit is monitored throughout the approval process, so any change can impact your ability to close on your loan.
DO submit all items requested within 3 days
During the loan process, we will collect and verify all documents necessary to prepare your file for review. This documentation tells us everything that we need to know about you and the home you are financing. It is critical that you provide everything that is requested of you as quickly as possible to avoid delays.
DO notify your Loan Officer of any changes
Whether changes include your employment, your marital status, or your overall financial picture, let your Loan Officer know of any changes as quickly as you can so you can assess together whether this will impact your mortgage.
DO let us know if you have questions
Your team here at Certainty Home Loans, including your Loan Officer, is here to answer any questions that you have during this process. We understand that obtaining a mortgage can seem like new territory and we’re here to guide you throughout your journey.
We hope that this list of ‘Do’s and Don’ts’ will help you prepare to apply for a home loan. We want you to go through your homebuying journey with confidence.
Have questions about your ability to qualify for a mortgage? Find one of our local Loan Officers to schedule a quick chat.