Mortgage 101

Mortgage Do's and Don'ts

DO

Apply online, at anytime!

Apply Now →

DON'T

Go house shopping without knowing what you can afford. When you get pre-approved early in the mortgage process, you identify how much house you can afford. With a pre-approval letter, you have the opportunity to make a stronger, more competitive offer since the lender has already verified your income and assets.

DO

Work with home-buying professionals.

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DON'T

Think you have to do it alone. Consider us as your personal home loan coaches. Each member of our team has a unique skill set and experiences to help you achieve your goal.

DO

Understand your credit.

DON'T

Open or close credit lines without consulting a professional. Understanding your overall credit is important when applying for a mortgage. You can request a free copy of your credit report. If something looks inaccurate, contact the credit agency. Be sure to avoid opening new lines of credit, closing credit lines, making large purchases, or co-signing on a loan before or during the mortgage process. Honesty IS the best policy so be sure to includes ALL debts and liabilities in your mortgage application.

Request Free Credit Reports →

DO

Keep lines of communication open!

DON'T

Be slow to respond to your mortgage professionals. Our team will be in contact with you throughout the entirety of your mortgage process. You can keep items moving by providing your loan officer with necessary documents and information as soon as possible. One key component to getting an on-time approval is the level of responsiveness of the borrower.

DO

Keep your current job and income.

DON'T

Quit or change jobs. Applying for a mortgage is about your stability and making major life changes, like switching jobs, can hinder the mortgage process. Amending your tax returns can also cause issues in the application process. In some cases, you may need a new loan approval. Pay raises and promotions are exceptions to this rule.

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DO

Make a savings plan.

DON'T

Make major purchases. Your main focus during this time should be SAVING not spending. Don’t make any large purchases like new furniture, a car, a boat, etc… You could need these funds to make an earnest money deposit. Large purchase can also impact your credit. Pro Tip: ALWAYS pay your bills on time! Late payments are red flags on mortgage applications.

DO

Maintain a paper trail.

DON'T

Make large bank deposits. Mortgage Professionals are required to document where your funds come from for earnest money deposits and down payments. Be sure to have a clear trail of money going in and out of your accounts and where it came from. Avoid making large cash deposits or electronic transfers into your personal banking account. This does not include depositing your paycheck. Pro Tip: If you’re self-employed, it’s smart to keep your person funds and business funds in separate accounts.

DO

Keep good records.

DON'T

Be surprised if you're asked to provide more documents. Key documents Mortgage Professionals like to see include (but are certainly not limited to) documents related to: income, employment verification, current debts or obligations. This is where a good paper trail of W2s, tax return documents, pay stubs, and bank statements come in hand.

DO

Ask questions.

DON'T

Panic. Seriously, you're going to be fine! Our goal is to make you feel confident and knowledgable about your finances and the mortgage process. There are no stupid questions - so ask away! The mortgage process may be overwhelming and confusing at times, but that’s why we’re here to help. Through trust and open communication, you’ll learn more about the mortgage process than you expected, all while making your dreams come true.

Documents to Obtain to Prepare for the Mortgage Process

  • TWO (2) months of most current asset statements for all accounts, including blank pages.

  • TWO (2) years of W2s

  • TWO (2) years of federal tax returns with all schedules

  • Recent pay stubs

  • Most recent statements for retirement accounts (IRA, 401(k), etc.)

  • Copy of driver’s license or proof of ID

  • Mortgage statement for all properties owned

  • Homeowner’s insurance for all properties owned

  • YTD profit and loss (P&L) statement * Self-Employed Borrowers