Applying for a mortgage can feel overwhelming, but knowing what to do—and what to avoid—can help keep your loan on track and make the process as smooth as possible.
Below are some key mortgage dos and don’ts every borrower should know.
Mortgage Dos
- Get pre-approved early. A pre-approval helps you understand your buying power and shows sellers you’re a serious buyer.
- Gather your documentation up front. Be prepared with recent pay stubs (covering a 30-day period), 2 years of W-2s and tax returns, two months of bank statements, and, if self-employed, year-to-date profit & loss, and balance statements.
- Pay all bills on time. Your credit score directly impacts your approval and interest rate. Even one late payment can cause an issue.
- Disclose your funds to close. We must verify the source of all down payments and closing funds. Undisclosed gifts or unexplained deposits can delay approval and closing.
- Ask questions. If you don’t understand a term, fee, or document, ask. Our expert loan officers are here to explain every step
- Share your transaction contacts. Let us know who your professionals are – real estate agent, attorney, accountant, or financial advisor to ensure smooth coordination
Mortgage Don’ts
- Don’t freeze your credit. Lenders pull credit and run a soft pull prior to closing. A credit freeze can delay processing and final approval.
- Don’t change jobs close to closing. Avoid changing employers within 30 days before or after closing, as employment changes can disrupt approval, even with higher income.
- Don’t make large purchases or open new credit. Buying or leasing a car, running up credit cards, or applying for new loans can increase your debt-to-income ratio and jeopardize final approval.
- Don’t make large, undocumented deposits. Funds must be sourced and documented. Unverified deposits cannot be used toward your transaction.
- Don’t ignore our calls or emails. Delays in signing disclosures or providing documents can slow the process or result in a loan denial.
- Don’t wait to secure homeowners’ insurance. Insurance quotes and policy binding take time and are required prior to closing – start early to avoid last-minute delays.
Contact GuardHill Financial and be matched with a mortgage specialist to see how GuardHill can make the mortgage process easy for you!
