Mortgage Do’s and Don’ts
Interest rates still are among the lowest they’ve been in years, and that’s good news if you’re ready for a new home.
Securing a mortgage is an important part of the process for most homebuyers. TRI Pointe Connect is the affiliated mortgage broker for a family of premium home builders, including Pardee Homes, that comprise TRI Pointe Group. To help make acquiring your mortgage smoother, TRI Pointe Connect suggests the following tips:
- Save for a down payment and closing costs. In general, you will be required to pay five to 20 percent of the purchase price up-front as a down payment, depending on the type of loan you secure. Plus, there will be closing costs, fees that you will pay when the loan funds. The loan estimate you receive when you apply for a mortgage will give you an idea of what you will need to complete the transaction.
- Know what your credit score is, and make sure you are “financially fit.” For example, you should decrease your debt and show ongoing, timely payments.
- Consult a professional. A qualified professional can assist you through the challenging homebuying process. Talk to a mortgage representative about your mortgage options and how much you can afford to spend on a home.
- Know your interest rate.
- Leave your money where it is (same bank, same account) until your loan closes.
- Make sure all deposits into your account are documented and sourced (such as payroll).
- Keep a daily tip log if you receive tips to match your bank deposits.
- Have a copy of the bill of sale and certified check for sale of personal property, like a car.
- Stick to a budget. Besides your mortgage payment, you’ll have other expenses like homeowners insurance, property taxes and maintenance costs. Make sure you can adhere to a realistic budget.
- Deplete your savings account to fund your down payment or closing costs. A useful rule of thumb is to stockpile three to six months of living expenses to cover emergencies.
- Change jobs before or during the loan process. Doing so, especially if the job is in a different line of work or at a lower pay rate, may slow the loan approval.
- Make major purchases. High-ticket consumer items, like a car or home theater system, can affect your ability to secure a mortgage.
- Increase your consumer debt/credit card balances.
- Let your payments fall behind.
- Co-sign a loan for anyone else.
- Use cash or money orders for your builder upgrade options.
If you would like to know more about TRI Pointe Connect, or Pardee Homes, connect with a New Home Specialist today.