Do's & Don'ts After Applying for a Mortgage Loan
This might be the year you've decided to find and move into your dream house. As the journey to home ownership gets underway, there are several important steps to follow after submitting your completed mortgage loan application to the lender. Putnam 1st Mercantile Bank in Cookeville, TN, shares the do's and don'ts to keep the loan review process in your favor.
Do:
Make on-time bill payments.
Late payments while your mortgage loan application is being processed can be a death knell. Commit to paying your car, student, credit card, and other financial loans by their respective due dates. Lenders want to continue to see potential borrowers stick with their routine of making on-time payments. It provides them with documented proof that they will do the same with their mortgage bill.
Get preapproved.
Once you've submitted your application, be sure to get preapproved. This process involves giving documents, such as proof of income and bank statements, to the lender to determine how much financing you will qualify for. Preapproval also provides the loan's interest rate and monthly payment amount. Armed with this information, potential borrowers will have a better idea of how expensive of a home they can afford.Keep important documents handy.
Your lender will most likely need to see personal financial documents for the mortgage loan review process. These include at least three months of bank statements, paycheck stubs, and checking account transactions. Keep a file of the documents handy in case you need to submit originals or copies.
Don't:
Change employers.
Because your loan application is based on your current employment and salary, don't leave your present job. Doing so could affect financing qualifications or even lead to a rejected application. It's also better to hold off on leaving your job to start a business or become an independent contractor.
Close credit card accounts.
Lenders also look at a borrower’s credit score during the mortgage loan review process. The higher the score, the more favorable chance for approval and better financing. Closing credit card accounts now could cause a credit score to drop. Keep them open and be sure to continue to make on-time payments.
The lending team at Putnam 1st Mercantile Bank understands the excitement of buying a new home. That's why the loan officers want to ensure mortgage loan applicants do the necessary preparation work to get approved. If you're embarking on the search for your dream house, call (931) 528-6372 to get started with the pre-qualification process. Visit their website to learn more about the bank's loan services.
About the Business
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Putnam 1st Mercantile Bank
200 W Jackson St., Cookeville, TN 38501
CALL US+1 (931) 528-6372
CALL US+1 (931) 528-6372
