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Mortgage Loan Process Dos and Dont’s

Looking at new homes in Grand Forks ND and finding your dream home is the exciting part of the house hunt. It’s the mortgage process that most people aren’t so happy about. The paperwork, the credit scores, and the extra costs can make even the most financially sound person feel overwhelmed. To help you keep on track during your home buying process, here are some of the dos and don’ts to keep in mind.

First and foremost, don’t go house hunting without a real understanding of just how much you can afford for a new home, keeping in mind monthly payments, utilities, maintenance, and any other fees that you’ll need to budget into your plan. Once you have a budget, do get pre-approved for a mortgage to speed up the process once you find a home

It is important to have a paper trail documenting where your funds are coming from and going to in your bank accounts. Don’t make any large cash, check, or electronic deposits into your account during the home-buying process unless you can clearly prove it is not a loan. Large deposits like that can cause concern to lenders.

Similarly, don’t make any large payments for items such as cars, furniture, or other large-ticket items. This is particularly important if they’re purchased on a line of credit. It is much better to try to build up your savings and pay off some debts before the home-buying process to improve your debt-to-income ratio.

Ultimately, when purchasing any of the new homes in Grand Forks ND, it is important to work closely with professionals, such as realtors, appraisers, and loan originators. Their organization, skill at negotiating, and understanding of the contracts can be vital in moving the process forward smoothly. At the same time, make sure you understand the basic terminology so that there are no financial surprises when it comes to closing costs. Don’t be afraid to ask questions.

Sometimes it can take as little as 30-45 days to close on a home, so make sure you are readily available. Keep in close contact with your loan officer and make sure you know who is responsible for what so that everyone is on the same page and there are no surprises or unnecessary delays.

Organization, clear communication, and good records go a long way in helping you sail smoothly through the home buying process. Try to do as much preparation in advance so that when you’re ready to start looking for your new home, you won’t miss out on any great opportunities.

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This post was written by Crary Real Estate

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