The majority of home buyers in Lancaster County choose to obtain a mortgage when they are purchasing a new home. While buyers know that they’ll need a mortgage to buy a property, many aren’t sure where to begin. How much money do I need to put down? What type of mortgage is best for me? What kind of documentation do I need to have prepared?
Many of these questions are best answered when you’re talking to a trusted, local mortgage lender. However, there are definitely some universal “do’s” and “don’ts” to consider when you’re applying for a mortgage.
- Keep originals of important financial documents or be able to easily access them online. This includes bank statements, pay-stubs, etc.
- Provide your down payment from your own personal bank account. You’ll need to provide a paper trail showing this money cleared the account.
- Notify your lender if you plan to use any gift money. There are special requirements when gift funds are being used and you want to make sure to deal with that properly and up front.
- Notify you lender if there are any changes in your employment immediately. This includes a promotion, pay raise, change of pay structure, etc.
- If applicable, be sure to provide all documentation on the sale of your home to your mortgage lender.
- Open or close any accounts, or transfer money from accounts, without consulting your mortgage lender first.
- Deposit any money into your accounts outside of your routine payroll without consulting your mortgage lender first.
- Change or leave your job without asking about the impact it will have on your loan.
- Make any major purchases prior to settling on your home. This includes (but is not limited to) a new car, appliances, furniture, etc.
- Open any new credit accounts or charge large amounts to your current credit accounts. A new credit report will be pulled right before closing.
When in doubt, the best rule of thumb is to consult your mortgage loan officer prior to making any financial decisions if you are in the process of trying to purchase a home. A great local lender will be able to guide you through the process smoothly.
Thanks to Elaine Leech from Caliber Home Loans for helping us to compile some of this information. If you’d like to learn more about your mortgage options, feel free to contact us or visit Elaine’s website.