5 Financial “Do’s” of the Mortgage Process

Getting ready to buy a home should be an exciting and fun process. As you prepare for the big day, make sure you follow these five “do’s” to ensure that your home loan can be processed without unexpected “bumps” along the way. 

1. Do: Make ordinary deposits to your bank account and typical charges to your credit card. In other words, it’s important to keep your financial habits steady. If you normally charge your weekly groceries, continue to do so. If you typically deposit a check once monthly, keep it that way. You get the idea!
2. Do: Pass on co-signing any loans. Your teenager may be ready for a car, but now is not the time to co-sign for a car loan. In fact, it’s best if you don’t take on any new debts during the homebuying process. If you absolutely must do so, consult with your loan originator first.
3. Do: Be honest on your loan application about any outstanding debts. The more transparent you are with your loan originator, the more likely you’ll be able to get to the closing table on time.
4. Do: Enjoy your current couch, car, and job – because you’re keeping all three, at least until your home loan closes! Any large purchases (even furniture) are a no-no. Remember: your spending habits should be typical. If you don’t normally buy a car every month (I mean, that would be nice, right?) then don’t do so during your home loan process. Plus, it’s important to keep your current job, so that your income and assets remain as steady as possible.
5. Do: Save money for your closing. People tend to forget about the closing costs associated with a mortgage. Do yourself a favor, and save up some money. The more prepared you are, the better you’ll feel when you come to the closing table.

These tips are just a start. And, obviously, everyone’s situation is unique. If you have a specific question about your financial situation during the home loan process, give your loan originator a call. We encourage frequent and transparent communication throughout the loan process – so everyone can feel informed and have peace of mind. And, with so many low- and no-down-payment options, you might have a little nest egg for the new things you’ve been wanting to buy for your new home.

This article is presented to you by Waterstone Mortgage. Please click here to read the full article.