So you are about to embark on the exciting journey of buying your first house and land in Whittlesea and already thinking of getting prequalified for a loan by a mortgage company. It’s very likely you’ll be working with a loan officer to guide you in the mortgage application process. Your loan officer acts as the main point of contact and will do his or her best to make the application process as hassle-free as possible. Here are three things your loan officer wishes you knew.
Your credit is very important
A mortgage is a significant amount of money, and the bank takes a huge risk by granting it to you. Understandably, the lender wants to know that they’re taking that risk on a financially responsible person. That’s why it’s important to have a healthy credit history. Before starting the application process, get a credit report and fix any issues it may have early enough.
Quitting your job is a terrible idea
Lenders must verify the status of your employment before they can fund your home’s purchase. This is the best way to gauge your ability to repay the mortgage. Should your employment status change at any time between the application and the funding, the lender can decline your loan application. It’s therefore wisest to stay at your job as you apply for a loan.
Your down payment needs to be verifiable
As you already know, you need a down payment to qualify for a conventional mortgage. Most lenders require the figure to be about a fifth of the total cost of the home. But having the money ready is not enough. Your lender wants to know that the source of the money is reliable, for instance, a reputable bank, an investment company, or a credit union.
The loan application process can either be long and complex or smooth and straightforward. By keeping a few things that your loan officer wants you to know, you can successfully get a mortgage and buy your dream home without the hassle.