To avoid unwanted surprises when buying a home, DFCU Financial Vice President of Mortgage Services Cheryl Nelson recommends taking a few very important steps.
Before you begin house hunting:
1. Be prepared
Gather your documents and have them available for a quicker loan application process. You’ll be asked to verify your income by presenting W-2 forms, tax returns and employment records. Recent bank statements with checking and savings assets will also be needed.
2. Talk to a pro.
Review all the flexible mortgage options available with a qualified loan officer to help determine the right loan solution for your lifestyle and budget. DFCU Financial offers a free mortgage review with mortgage experts just for this purpose.
3. Know the score.
Understanding your credit score is important. (Your lender can help with this.) If you have no credit history, or past credit issues, take steps to build, improve and maintain good credit.
4. Get it in writing.
So now you’re prepared. You know your score and you’re ready to apply and get a pre-approval letter
from your lender. This letter gives an estimate of how much you can borrow and demonstrates you're a serious home buyer to sellers.
After signing a purchase contract—but before closing:
1. Don't be tempted.
Resist the urge to take out new loans, make large cash purchases or open new credit cards. This type of financial activity could require your lender to resubmit your mortgage application to reassess your credit/loan qualification status.
2. Meet deadlines
Provide loan documentation and information to your lender promptly. A missed deadline could be costly and result in a delayed closing or a resubmission of your mortgage application.