THE DO'S AND DON'TS DURING THE LOAN PROCESS
Your credit, income and asset situation is critical to maintain during the loan process. Here are some "do's and don'ts" to follow once you have decided to buy a home.
Our goal is your successful closing!
Navigating the Loan Process: Do’s and Don’ts for Pennsylvania Homebuyers
Purchasing a home is one of the most significant financial decisions you’ll ever make. At BMC Keystone, we’re committed to guiding Pennsylvania homebuyers through a smooth and successful loan process. Whether you’re a first-time buyer or a seasoned homeowner, understanding the dos and don’ts throughout the mortgage journey is key to securing your dream home. Here are some critical insights to help you avoid common pitfalls and ensure a positive experience.
Dos During the Loan Process:
- Do Get Pre-Approved Early
Start by getting pre-approved for a mortgage before house hunting. This not only gives you a clear understanding of your budget, but also shows sellers you’re a serious buyer. At our Glenside office, we offer personalized pre-approval consultations tailored to Pennsylvania’s unique housing market. - Do Gather and Organize Your Documentation
You’ll need to provide documentation such as pay stubs, tax returns, bank statements, and identification. Collect these documents early and keep them organized to streamline the process and prevent unnecessary delays. - Do Respond Promptly to Requests
The mortgage process involves frequent communication with your lender. Responding promptly to requests for additional information can help keep your loan application on track and prevent delays in closing. - Do Maintain Stable Employment and Finances
Lenders verify your employment and financial status during the loan process. Any significant changes, such as job switches or large deposits, can raise red flags. Aim for stability until your loan closes. - Do Consult Your Mortgage Partner
If you have questions or concerns, consult with your mortgage partner. As your local Glenside mortgage experts, we’re here to provide clarity and guidance every step of the way.
Don’ts During the Loan Process:
- Don’t Make Large Purchases or Open New Credit Accounts
Avoid making big purchases, such as furniture or vehicles, or opening new credit cards. These actions can increase your debt-to-income ratio and negatively impact your credit score, jeopardizing your loan approval. - Don’t Change Jobs or Employment Status
Changing jobs or becoming self-employed during the mortgage process can complicate your application. If a change is unavoidable, notify your mortgage partner immediately so they can advise you on the best course of action. - Don’t Move Money Between Accounts Without Documentation
Transferring large sums between accounts, especially without clear documentation, can trigger scrutiny from underwriters. Always provide a paper trail for any significant transfers. - Don’t Ignore Communications from Your Lender
Missing emails or calls from your mortgage partner can cause delays or missed deadlines. Stay connected and proactive throughout the process. - Don’t Falsify or Omit Information
Providing incomplete or inaccurate information can jeopardize your application and even lead to denial. Be honest and thorough when supplying details to your lender.
We pride ourselves on being a trusted partner for Pennsylvania homebuyers. By following these dos and don’ts, you’ll be well-positioned for a successful and stress-free home loan experience. Remember, your mortgage partner is here to support you from pre-approval to closing. Let’s make your homeownership dreams a reality!
For Our Complete List of Do's and Don'ts for the Loan and Mortgage Process for PA Potential Homeowners, Look Below!
- DO...Stay current on all existing credit accounts. Make those payments on time!
- DO...continue using all your existing credit as normal, but without large purchases
- DO...provide all documents requested up front and keep original paystubs, bank statements, tax returns and other financial documentation handy. You may be required to update your loan file during the process.
- DO...notify us if you are planning on receiving any gift funds for the down payment or closing costs.
- DO...notify us if you have any financial expenditures coming up during our loan process that will lower your assets.
- DO...notify us if you have any upcoming employment changes, raises, promotions, change in pay structure etc.
- DO...respond promptly to all requests to provide documentation, sign documents, answer questions etc.
- DO...notify us if you are going on vacation at any time during the process.
- DO...be flexible and make yourself available for your home inspection and your closing appointment.
- DON'T...apply for any new credit, open any new credit accounts or close any currently opened credit accounts.
- DON'T...make any large purchases on your current credit accounts or increase your spending on current credit accounts.
- DON'T...co-sign for anyone else for a home or car loan or any other type of credit.
- DON'T...dispute any credit accounts on your credit report before or during the loan process - disputed accounts can alter your credit score.
- DON'T...pay off any collections or charge-offs on your credit report unless advised by a credit professional or your mortgage consultant. Activating these accounts by taking action may alter your credit score.
- DON'T...make any type of employment or compensation changes without notifying your mortgage consultant.
- DON'T...close any bank accounts, open new bank accounts or move money around between accounts.
- DON'T...deposit cash to your bank account without contacting your mortgage consultant to discuss the requirements of documentation and whether or not it will be accepted as funds for closing.
Trusted Mortgage Advisors
Get started with a one-on-one consultation with a BMC Keystone Mortgage Professional.
- Understand the mortgage loan process
- Learn which type of mortgage is the best match for you
- Know your credit scores and how they affect your rates
- Know how much house you can afford
- Overcome credit issues so that you can get the lowest possible rate
- Get a letter of pre-qualification