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We know the home buying process can be scary and complicated. We’ve compiled a list of tips to help make purchasing a home more enjoyable.

Here are ten things to keep in mind as you move forward in the home buying process:

1. Documentation. There will be certain documentation that your lender will need for your loan application. Some examples are W2’s, your last two pay-stubs, and last three bank statements. If you don’t have them, start getting them together. Also, keep these documents handy since you will need them throughout the whole process.
2. Asset verification. Your lender will verify your assets and may even ask you for copies of checks that you have deposited. This is especially true if there is a large deposit made into your account. Also, if you are receiving a gift to help you purchase your home, keep in mind you will need documentation as well (i.e. the bank statement of the account where the funds came from).
3. Income verification. If your compensation is based on commission, bonus or overtime pay, your lender will need to verify a two-year average. Unfortunately, without this information the mortgage lender will most likely not be able to process your loan application. 
4. Closing date expectations. Typically it takes 30-90 days to close a loan. However, if the property you are buying is a short sale or foreclosure, the closing date may be affected. Also, make sure you have funds available to cover closing costs.
5. Credit Changes. Any credit change that impacts your credit score could also affect your mortgage loan application. We compiled a list of things that could affect your credit on our “Credit Report Changes During the Mortgage Process” article.
6. Additional/future costs. As you start looking for a home, make sure that you take into account potential future costs such as utilities, repairs, and maintenance costs. Also, before you put an offer on a house, check with your banker because the variables in property taxes and insurance could change your monthly payment, closing costs and your qualifications for a loan. Our article “The True Cost of Home Ownership” talks about some of the additional costs of buying a house.
7. Condition of the property. If the home that you are interested in is a “fixer upper” and needs large repairs, be aware that your loan closing may be delayed until these repairs are made, or it may not be eligible for financing. Also, if you are interested in a condo that is still under construction, you may have to wait for the condo to be finished before applying for a loan.
8. Homeowner’s insurance. Once you found a home, please start looking for homeowner’s insurance as soon as you can. Your lender typically will need proof of homeowner’s insurance about one week before you anticipate closing your loan.
9. Your lender’s role. Your mortgage lender or loan officer has to ensure that you understand all the terms of your loan and explain the mortgage process to you. Keep in mind that even though the lender’s role is to get you into your new home as soon as possible with little to no complications, there are times when third party vendors may affect the closing process.
10. Your role. Communication is key- this includes both letting your lender know of any change in your financial situation and the best way to reach you. This will help your mortgage process much smoother and avoid miscommunications.

Keep these ten tips in mind as you progress in your mortgage loan process to help you avoid headaches in the future.

We hope you found this helpful and please let us know what you think!

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