We all know that getting a mortgage is a major decision, with lots of steps involved. Our job is to guide and educate you about things you can do along the way to make the process go more smoothly. Protecting your credit score is critical when you’re in the process of buying a new home. Your rate and loan costs could be affected by even a slight change. Since getting a mortgage requires that you show your creditworthiness and financial stability, here are a few steps you can take to position yourself as a good candidate for a mortgage:
- Make sure you have access to recent:
- Pay stubs, W-2s and/or 1099s and Tax return
- Bank statements
- Keep up on all your credit payments by making them on time and avoiding late payments on: vehicle, credit cards, utilities, student loans.
- When possible, pay off the total balance of credit cards instead of just making the minimum payment required.
- Speaking of credit – don’t apply for new credit, such as a new credit card, car loan, or financing for furniture or appliances. If you do, notify your Mortgage Originator as soon as possible so these debts can be verified and included in your loan review.
- Stay at your current job. Since reliable income is a big part of your qualification and stability is important to your creditworthiness, a change now can affect your credit score and delay your loan application. If you do change employment, notify your Mortgage Originator immediately. New income and employment will have to be verified for loan approval.
- Don’t liquidate funds (keep your investment funds invested)
Your credit report may be pulled several times throughout the course of processing your home loan, so keep the above advice in mind. And always be sure to inform your BankWest mortgage originator of any changes to your income, debts, purchases, or other financial matters.
These tips are a great start to getting you on the road to refinancing or purchasing a new home. Together we can keep the home financing process smooth and stress-free!
Equal Housing Lender.
Once you’ve received your loan approval, next comes the most exciting part of all: becoming the legal owner of your new home! Your lender will most likely let you know when you’re scheduled to seal the deal and sign the final paperwork.
Before You Close
- Get a home inspection. Ask your agent for inspectors they recommend.
- Get a homeowners insurance policy. Talk to our knowledgeable insurance agents about coverage that’s a right fit for you.
- Review the Closing Disclosure and make sure any errors are corrected.
- Review any other closing documents, which may come from your lender or your agent.
- Get the final closing dollar amount and instructions for providing payment.
- Do a final walk-through of the home 24 hours before closing to ensure all repairs have been made.
Doing all of these things can make the process go a little quicker and will help get you into your new home that much faster.
What to Expect at Closing
Be prepared for signing papers. This can take as little as 30 minutes to complete. The title agent will review every document with you, explaining what each means, and you’ll sign off on them. Don’t rush, and if something doesn’t make sense to you – ask. Now is the time to make sure all the numbers are correct, all your contingencies are included, and all seller concessions have been recorded.
Your agent will probably accompany you, as will your loan officer, the seller and the seller’s agent.
If you have already wired the funds to the title company, you should get your keys to your new home right away! If funds for closing aren’t wired, you may also bring in a cashier’s check to cover your costs for closing.
To ensure a smooth transition in home ownership follow these tips and you’re on your way to closing day! Call one of our knowledgeable mortgage experts today for any questions you may have regarding the closing process!
Equal Housing Lender. NMLS #685987
Insurance products are not deposits, not FDIC insured, not insured by any federal agency, not guaranteed by any bank, and may go down in value.
Owning a home is a great investment, but before jumping into the market it is extremely important for consumers to consider the costs involved and budget accordingly to ensure they’re able to meet all of their financial obligations.
BankWest encourages consumers to consider these questions before beginning their housing quest:
How much money do you have saved?
Start with an evaluation of your financial health. Figure out how much money you have for a down payment. Down payments are typically 5 to 20 percent of the price of the home. But be sure to keep enough in savings for an emergency fund. It’s a good idea to have three to six months of living expenses to cover unexpected costs.
How much debt do you have?
Consider all of your current and expected financial obligations like your car payment and insurance, credit card debt and student loans. Make sure you will be able to make all the payments in addition to the cost of your new home. Aim to keep total rent or mortgage payments plus utilities to less than 25 to 30 percent of your gross monthly income.
What is your credit score?
A high credit score indicates strong creditworthiness. Home buyers can expect to have their credit history examined. A low credit score can keep you from qualifying for a mortgage loan. If your credit score is low, you may want to delay moving into a new home and take steps to raise your score.
Have you factored in all the costs?
Create a hypothetical budget for your new home. Find the average cost of utilities in your area, factor in gas, electricity, water and cable. Find out if you will have to pay for parking or trash pickup. Consider the cost of yard maintenance and other basic maintenance costs like replacing the air filter every three months. Factor in real estate taxes, mortgage and homeowners insurance and possibly a home owner association fee.
How long will you stay?
Generally, the longer you plan to live someplace, the more it makes sense to buy. Over time, you can build equity in your home. Carefully consider your current life and work situation and think about how long you want to stay in your new home.
If you’ve evaluated your budget and are considering purchasing a home contact one of our knowledgeable mortgage professionals to help you through the home buying process.
NMLS #685987 | All loans subject to credit approval