Do's and Dont's during your loan process
Many credit reports contain incorrect data. It can lower your credit score and cost you thousands of
dollars, or even disqualify you. With the same down payment, a mortgage with a 659 FICO score can
cost a full point more than the same loan with a 660 score. That's an extra $2,500 for a $250,000 loan.
With less than 20 percent down, the lower credit score will also see higher costs for Private Mortgage
You can get your credit report for free from us, including your FICO credit score. FICO score will give you
a better understanding of how lenders will evaluate you, and you may be able to correct errors and
improve your score before applying for your home loan.
Do: Use a Mortgage Calculator
We can advise you how much home you can borrow, but only you know what payment you can comfortably afford. A mortgage qualification calculator can show you how a comfortable payment translates to a home purchase price. Then, you can narrow your search to affordable properties that will not break your budget. You can use our calculator HERE or under Tools and Calculators tab
Do: Get Pre-Approved for Your Purchase
Getting pre-approved for your mortgage is a process where you start a mortgage application
and receive a conditional loan approval. It is vital in active and competitive housing markets.
Not only does pre-approval make whole process faster and easier, but it tells sellers that you
are serious and financially ready to buy. This can put you in a stronger position than your
competition for a desirable home.
Don't change jobs before you buy your home, unless you're getting a raise.
Don't move money around and don’t make large deposits into your bank accounts that you
don’t want to explain or document.
Don’t: Co-sign on a loan for anyone
Don’t make large purchases before buying, especially if you're financing them. It can blow your
debt-to-income ratios and drop your credit score, jeopardizing your approval.