Ease Into a Smooth Home Mortgage Loan

Know your credit score and don’t make fast moves.

That’s the advice of Pat Sigle, an Alabama home loan officer, and Toni K. Roberts, an Alabama mortgage advisor, who are right on the money when they say a little preparation can go a long way toward securing a much smoother home mortgage loan application process.

The mortgage loan paperwork can seem endless, but it’s not all that complicated or demanding when you consider that it will help land a dream house or condo.

Sigle begins your paper trail journey toward getting your ideal home loan with these tips:

Pull your own credit report and understand your credit score. If there’s a problem, you can address it before it affects your mortgage loan.

Knowing the score also arms you with data on what the mortgage lender will tell you in relation to that score. Also, knowing your score helps lenders put together a loan program more appropriate to you. For example, if you have high debt but a great score, it’ll help you get the loan.

Interview lenders and ask about home loan programs before actually applying for a home loan, because every application means they’re pulling your credit, and that will hurt your credit score.

Just because you’re approved for a mortgage doesn’t always mean you should get one at that time. Be realistic and take a hard look at your finances.

Don’t expect the same mortgage loan as your friends, family or co-workers.

Sigle says mortgage loan programs are not cookie-cutter for every borrower; they can be different. Instead, you should meet face to face with mortgage lenders and go over every question you have. She warns that too many people are in such a hurry that they don’t take the time to do it right.

Also, she warns:

“Borrowers don’t need to jump on ads from lenders out-of-state. Out-of-state lenders are not familiar with the local market and do not always disclose all the costs that a borrower may incur at closing, or up-front expense. There is nothing better than meeting your mortgage company face-to-face.”

Don’t move money around shortly before applying for your loan.

Many people think when they’re buying a house they need to pool their money in savings. While a home loan lender only sees your money total, regardless of what accounts it is in, they do consider movement of large deposits that do not appear to be normal payroll deposits or what they call “seasoned funds” for the past three months, so be prepared to document or explain the money.

Bottom line: If you don’t want to get stuck doing paperwork, leave your money alone for awhile prior to your big house buy.

Also, if you want to change banks, do it three months before you go house shopping so it will also be considered a “seasoned account.”

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