You are almost in your way if your loan application is pre-approved. But this is not the time to get excited. Still, you need to go several miles to reach about your goal in Pre-approval mortgage Richmond Hill. All these rides to your goal can be bumpy if you don’t take care.
You have now mortgage pre-approval. But do you know, still you have to maintain some important steps? Here the steps that you need to make after mortgage pre-approval is described.
Don’t waste your time when you get a home
When you are getting home for buy then don’t waste a single time by searching another one. If you find a perfect one as per you require and budget submit your pre-approval letter from the lenders or banks. Because without pre-approval letter the seller of the homes doesn’t give you any importance whether you have a huge cash. But the competition of the market will not allow to stand still. If you submit the letter through your lenders, you will be permitted to buy the home based on your credit history and score, your employment, financial status and others key factors.
Don’t apply for new credit
The credit can be pulled at any time even when closing the loan. Negative changes can also leave an impact in the terms of the deal. Applying for a new one can impact the credit score that you have. Accumulation for new debt can also change the debt to income ratio. Debt to ratio is no doubt an important factor in mortgage loan requirements. A new credit means your credit score could be change that help your interest rate also be adjusted.
Don’t make a large purchase
This is tempting to purchase any pricy furniture, appliances, and other household items after getting pre-approved for the mortgage. Paying cash will dent the service and it may also increase the debt to income ratio, credit utilization. To maintain a great credit score, expert suggest keeping at least 30 percent of credit utilization. Until you close the mortgage, don’t purchase any big thing. Your lenders will monitor such transaction and they will calculate the payment ratio with your debt and it could be impacted on your mortgage loan. For the result your mortgage loan could be delayed or even cancelled.
Paying all to your debts
Before you do anything in your finance system, ask your lender to take her/his suggestion. Every step related to money has a negative impact. Paying all of your credit and debt, it can damage the account and cash reserve.
Don’t change the job
This is one of the main factors in the home buying process. You can receive a bigger and greater job that you currently have. So, you are going to accept this offer? Don’t do that. It will leave an impact on your household income. If you are a W-2 employee and get paid regularly and you trade with it regularly, then hold on. Pre-approval mortgage Richmond Hill suggest to not repeat it until you purchase the new one.
Use some knowledge whether you have a lender
Sometimes lenders could suggest you to buy a house worth $250 K. Don’t go with his/her proposal. Think several times before going with it. Calculate your loan and budget after your daily expenses, also the expenses which you have to pay on monthly basis. If your income $80 K, you can afford to buy a house worth between $150 K and $190 K.
Buying an expensive house means your burden will be increased and it will stretch your monthly budget to make mortgage payments. For this reason, you won’t save any money for any emergency and all your cash flow will be eaten up.
Moving money around some complicated thing
One thing that the lender ask you is your bank statement. The lenders make it sure here that you are going to repay the amount from your own money or not. If you have multiple bank accounts and you shift money one to another a lot, then you need to prove it that this money belongs to you. The more money you shift between one to another, the much verification and explanation you need to give.
Do not make any unusual deposit
Generally, you do two types of work with your bank account. One is the deposit and the second is withdrawal. Larger income or larger deposits can be asked for the resource. You can be asked for cash gifts and vouchers also. If you are a first time home buyer, then you may receive a large cash gift. So, this will be better to disclose to your loan officer. You should be aware of at least $200 which is not a part of your regular monthly income. This is always better to talk with the loan officer about this income.
Stay in touch with your loan broker
You can receive information about documentation and others at any time. Stay reachable to your mortgage broker. Avoid any big vacation or any big trip where you don’t have access to your email and phone. If you aren’t available, they make any assumption about your intent or cancel it anytime. If you are leaving in an emergency, then tell your broker and loan officer immediately.
Hire a Mortgage Broker instead of Real Estate agent.
If you able to find a house by your own it will be a best choice. But the whole task is quite time consuming and complicated as well. Try to hire a mortgage broker that represents you with the physical property and will negotiate the amount with the sellers. So, best to hire a professional mortgage broker who can find a lenders with highest rate of interests and represent you to the sellers of the property.
These all are the things that you shouldn’t do after Pre-approval mortgage Richmond Hill. Make a follow with these steps and get one step forward to your dream home purchase.