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Last updated on December 15th, 2022 at 09:19 pm
Author at Compare Closing LLC
Amanda Byford has bought and sold many houses in the past fifteen years and is actively managing an income property portfolio consisting of multi-family properties. During the buying and selling of these properties, she has gone through several different mortgage loan transactions. This experience and knowledge have helped her develop an avenue to guide consumers to their best available option by comparing lenders through the Compare Closing business.
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While going in for a mortgage loan on their dream home first-time homebuyers should take care of some basic dos and don’ts because a loan process can be quite overwhelming.
Do's
- A borrower should ideally get pre-approved before beginning house hunting so they know what is their budget.
- They must maintain their current employment and income, and keep it steady during the loan process. In case of job change, if the borrower is staying in the same line of work with the same or better income then that is an exception.
- A borrower should keep all paper trails of any large non-cash, non-payroll deposits.
Don'ts
- They should not go house shopping without knowing what they can afford. A borrower can meet up with a loan officer first so they can analyze the income, assets, and credit report thereby identifying the pre-approved amount. Pre-approved buyers, are taken seriously by realtors and lenders and are shown homes in the correct price range.
- Opening or closing credit lines, co-signing loans, or making major purchases during the loan process is not advisable. Many times credit reports are pulled up by lenders Right up to the day of wiring the funds to escrow for closing the loan the lenders may pull up credit reports to check so any huge purchase is unadvisable.
- A borrower should not deposit large cash amounts because lenders usually won’t honor large cash deposits as there is no way to paper trail them. If a borrower is expecting to receive a large deposit, they should talk to the mortgage professional beforehand and an alternate solution or exception should be discussed.
This way just by taking care of basic things first-time homebuyers can seamlessly wade through the home buying process.
Reference Source: Pamplin Media
