However, the most trying period for home buyers start when they decide to take a home mortgage loan. It is very important to think rationally right from the start. One should choose to work with a lender who is compassionate enough to understand the current financial condition of a borrower and make suitable suggestions. Also, the lender should be able to make the mortgage process as hassle-free for borrowers as possible.
These days, some lenders offer online services to make things simpler for borrowers. The online home mortgage loan process is automated; thus convenient for borrowers as they can check their loan status by accessing the internet. Loan applicants just need to register on the company’s website and create an account. They also need to authorize lenders to access their credit reports so that the relevant information can be collected.
Online mortgage processing helps borrowers keep track of their loan at every stage; be it the application filing, underwriting, approval or closing of the loan. It saves both time and cost for borrowers compared to a manual process.
When a professional mortgage company does all the paperwork by using advanced loan technology, it accelerates the loan approval process. Also, borrowers need to submit all the necessary documents, and disclose accurate information about their personal and financial history. For example, income disclosures should be backed with supporting documents as proof.
In addition to the above, borrowers should avoid committing the following mistakes:
Buying a new vehicle or getting a new credit card
During mortgage processing, avoid taking out any auto or credit loans. The reason being, a new purchase will reduce your savings and increase outstanding debt. This will in turn affect your credit score.
Making big purchases by using credit cards
Spending lavishly by using your credit card to buy new furniture or the latest home appliances or electronic gadgets may prove to be costly as your credit score will take a hit. If you already have outstanding debt, a big spending spree could make your debt-to-income ratio very high and reduce the chances of mortgage approval.
Job-hopping
Changing your job frequently could indicate an inconsistent income history. Similarly, staying with the same employer but changing to a commission-based or bonus-based income may not be considered positively. Home mortgage applicants should be careful about their expenditures to increase the chances of their loan approval. Keeping in mind the above factors can really be handy for borrowers.
