Fall is soon to give in to winter here in the mountains of Western North Carolina, but that doesn't mean that there aren't plenty of things to do and see in Asheville! We can't discredit the
Mortgage Loan Process Dos And Do NOTs
The mortgage loan process can be, at times, intimidating. Where do you start?? What do you do next?? What happens if you make a change?? Amerifirst Home Mortgage has been kind enough to provide everyone a quick guide to some pitfalls that you can come across during your mortgage loan process. We have to agree with what they're suggesting.
Getting pre-approved is an important first step in the home buying process. It allows you to better gauge how much home you can afford as well as gives you buying power. No one wants to accept an offer from someone who thinks they may be able to get a mortgage loan. You also don't want to fall in love with your dream home only to realize that you can't get it or sell yourself short.
Working with professionals in your area will give you wealth of knowledge, insight, and experience. The home buying process can have many hurdles so working with professionals will give you the support you need to get over them. The right professionals will be able to troubleshoot issues before they arise.
Keeping open lines of communication and keeping everyone in the loop is always a smart idea. You'll want to make sure that you know where you're at each step of the way. You may need to sign an additional document or have another inspection done in order to secure financing on your home. Staying in the loop will allow you to take care of things like that quickly and efficiently so that you don't hold up the purchase of your home.
Make sure you plan ahead to tax time. Not all home payments include taxes and insurance. You don't want to be blindsided by a large tax bill so make sure you know what taxes will be on your home as well as whether or not they are included in your payments.
Ensure that you are able to track all money associated with the purchase of your home. Try to avoid using cash and utilize personal checks during the home buying process so that you have something in writing to show where the funds came from and how much they were.
Start saving some extra money. You never know what may arise when purchasing your new home and it's a good idea to have some extra funds on hand so that you're ready for whatever may happen. You may make it completely through the purchasing process only to have a pipe burst after you get moved in. Avoid other major purchases while you're in the home buying process. You don't want to decrease your buying power.
Stay with the same employer until you have closed the loan process. Showing that you have a steady income is an important factor in getting a home loan/mortgage. If another opportunity arises you may want to wait until your loan has been closed before moving on. You may be offered more money but your lender will want to ensure that you will have more in the long run.
Keep current payments up to date and current credit lines open. You want to continue to demonstrate that you are able to wisely manage your credit accounts. You also shouldn't close any lines of credit--even if you pay them off. Closing them could actually negatively affect your credit score. I know it goes against what you would think but look at it this way: more available credit (ie paid off $1000 line of credit) is a better debt to income ratio.
Let's revisit tracking money--expenditures and credits. Your lender may get concerned if they see a large cash deposit added to your account that they don't know where it came from. Make sure that you have documentation of all your income so that you are able to prove that you did not get another loan.
Continue to keep good records and communicate with your lender. You're going to need to provide lots of information so make sure that you provide it all to your lender and don't leave anything out.
Prepare for the costs associated with obtaining a mortgage loan, commonly referred to as closing costs since they are paid at the end when you complete the mortgage loan process. Make sure to ask your lender for an estimate, they'll be able to give you a pretty accurate idea of what it will be.
These are just some helpful guidelines to assist you through the mortgage loan process. Your lender and real estate agent will be able to offer you other valuable insights in the process.
Skye Streppa is an Asheville native who holds a wealth of local knowledge and a depth of character found only in the mountains of North Carolina. His attentive advocacy to his client’s needs creat....