Loan Process Do's & Don'ts
Fairway offers a wide range of financing options and expert mortgage advice.
Do: Get Pre-Approved
An initial mortgage prequalification can usually be procured by filling out a form online. It is an estimate of how much you can afford based on the information you enter. A pre-approval helps assure you a more specific loan qualification and monthly payment amount.
Do: Have All Your Documents Together
Including pay stubs, bank statements, and proof of earnest money deposits. They will be required prior to closing.
Do: Pay Your Bills On Time
If you have outstanding debt or bills, make sure to pay them on time. Late payments can adversely affect your credit score. Even one 30-day late payment can prevent you from getting a mortgage loan.
Don't: Apply for New Credit Cards
Credit inquiries or applying for a new credit card can affect your credit score. The more creditors you have looking into your credit history gives lenders the gitters.
Don't: Change Jobs
Any change to your income can make it increasingly difficult to qualify for a mortgage. If you do change jobs during the mortgage process, be sure to notify your lender right away.
Don't: Close Any Credit Accounts
Closing a credit account, even one with a $0 balance, can affect your credit score by changing your percentage of available credit and payment history.
Do: Line Up a Homeowner's Policy
You will need to provide proof of a secured homeowner's policy prior to closing. Setting it up ahead of time is a good idea.
Do: Reduce Your Debt
Debt-to-income ratio is also considered by lenders. Your debt-to-income ratio is the monthly amount you owe toward your debt divided by your income. The lower your debt-to-income ratio, the more likely you will qualify for a home loan.
Do: Start a Saving Plan
Your loan approval may require you to have money in reserves at the time of closing. By saving now, you will be better prepared when it comes time to secure your mortgage.
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Loan Process Do's & Don'ts
Fairway offers a wide range of financing options and expert mortgage advice.
Do: Get Pre-Approved
An initial mortgage prequalification can usually be procured by filling out a form online. It is an estimate of how much you can afford based on the information you enter. A pre-approval helps assure you a more specific loan qualification and monthly payment amount.
Do: Have All Your Documents Together
Including pay stubs, bank statements, and proof of earnest money deposits. They will be required prior to closing.
Do: Pay Your Bills On Time
If you have outstanding debt or bills, make sure to pay them on time. Late payments can adversely affect your credit score. Even one 30-day late payment can prevent you from getting a mortgage loan.
Don't: Apply for New Credit Cards
Credit inquiries or applying for a new credit card can affect your credit score. The more creditors you have looking into your credit history gives lenders the gitters.
Don't: Change Jobs
Any change to your income can make it increasingly difficult to qualify for a mortgage. If you do change jobs during the mortgage process, be sure to notify your lender right away.
Don't: Close Any Credit Accounts
Closing a credit account, even one with a $0 balance, can affect your credit score by changing your percentage of available credit and payment history.
Do: Line Up a Homeowner's Policy
You will need to provide proof of a secured homeowner's policy prior to closing. Setting it up ahead of time is a good idea.
Do: Reduce Your Debt
Debt-to-income ratio is also considered by lenders. Your debt-to-income ratio is the monthly amount you owe toward your debt divided by your income. The lower your debt-to-income ratio, the more likely you will qualify for a home loan.
Do: Start a Saving Plan
Your loan approval may require you to have money in reserves at the time of closing. By saving now, you will be better prepared when it comes time to secure your mortgage.