Whether you’re a first-time homebuyer or it’s been a while since you’ve purchased or refinanced a home, the information below may be helpful in preparing for the mortgage process. It is always our goal to provide the most streamlined experience for you!
Things to consider during the mortgage process:
Find Your Comfort Zone
The monthly payment you qualify for may be more than expected. Considering the amount you are comfortable with prior to shopping will help pinpoint the precise home market you seek. Take into consideration your current monthly expenses, along with the new home payment, to develop a sense of what best fits your family’s budget. You may also want to consider potential furnishings, future maintenance cost & cosmetic changes or repairs. The long-term goal is for you to be happy with your monthly mortgage payment. Your Gulf South Mortgage loan officer is happy to help with this process. We want you to be informed and sure about your home buying decision.
Get Pre-Approved
A pre-approval gives you the confidence to shop accurately and efficiently. Sellers prefer pre-approved offers and may offer greater consideration to a pre-approved buyer over an offer that isn’t. The application process is convenient and easily performed by phone or through our buyer-friendly online application. Most buyers are pre-approved the same day!
Be Accurate in Your Loan Application
When your loan officer takes your application, it is very important to be accurate and forthcoming. You are responsible for truthful representation and doing so helps ensure any challenges or obstacles are addressed prior to finding your dream home. Each applicant is unique and specifics matter.
Examples include:
▪ Complete 2-year employment history listing ALL jobs with specific dates
▪ Recent life events such as divorce, relocation, bankruptcy, etc.
▪ Changes in income or specifics of overtime pay (exact timeframes & amounts)
▪ Providing accurate information in the beginning ensures a smoother process and timely closing.
Get Organized
Some general documentation is required for every borrower. On your first appointment with your loan officer, you will always need:
▪ 1 month’s current paystubs
▪ 2 month’s bank statements on all checking/savings accounts
▪ Last 2 year’s FILED tax returns and W-2s (Self Employed borrowers or USDA loans only)
▪ Photo Identification
▪ Social Security Card
Additional documentation may be requested, but these items will certainly get the process started. We will be happy to make copies for you or assist where possible.
Be Prepared to Get Personal
Lenders evaluate each aspect of your financial situation to qualify you for a mortgage. You may be asked questions that feel financially invasive, but rest assured this is a normal part of the process. We will do our best to keep this to a minimum, but be ready to be forthcoming with your loan officer, provide needed documentation and sign letters of explanation approved by you. Don’t feel anxious about the process. We are here to help, and we’ll work through it together.
Respond Promptly to Requests for Additional Information
During the loan process, additional documentation may be required by the underwriter. Information may include sourcing of deposits, copy of cleared earnest money check, complete employment & residential history, etc. Please know in advance this is completely normal and respond as promptly as possible to these requests. The quicker you provide requested documentation to your loan officer or processor, the quicker your loan can be underwritten and cleared for closing. Your timely cooperation is very helpful in making the process go smoother and is greatly appreciated!
Leave Your Finances Alone
In the months leading up to your pre-approval, try not to make major changes to your finances. This includes moving money from one account to another, making cash deposits, or receiving gift funds from a friend or family member for a down payment. Since lenders require an extensive paper trail and funds to be sourced, it is best to speak with a loan officer before taking these actions.
Pay Your Bills on Time
Your credit has a significant impact on your ability to qualify for, and what
terms you receive on, a mortgage. To improve your credit, get and stay current on all payments. Approximately 35% of your credit scores are based on whether you pay your bills on time; 30% of your credit scores are based on how much debt you owe. You might even want to consider paying down some of your debts. If you are unsure of your credit scores or what debts to pay off, your loan officer will be happy to discuss this subject in detail and guide you to make the right choices.
What NOT to do: (without checking with your loan officer first)
Don’t establish any new debt (credit cards or loans) or charge money to current cards
Don’t make any major purchases (furniture, vehicle, appliances, etc.)
Don’t make cash deposits that cannot be verified on paper. No “mattress money,” tips, or other unprovable funds. All money involved with the transaction must be accounted for. Payroll, tax returns, insurance claim checks are all acceptable. If you have questions, please ask before you deposit.
Don’t quit your job, change jobs or make ANY changes that affect your income without speaking to your loan officer first. Changes to employment or income may affect loan approval.
Don’t provide earnest money in cash.
Don’t be late on any payments.
Always Contact Your Loan Officer Immediately
Should anything arise related to your employment, income, assets, financial obligations, or major life events. Life happens! Keep us informed and we’ll help navigate the challenges.