5 Things You Need to Do When Applying for a Mortgage

If you're considering buying a home, you've probably found yourself scrolling through online listings and planning your new dream space. But then comes the big question: Where do you even begin? Before you get those keys in hand, you've got to tackle one essential step—securing a mortgage. To help you increase your chances of getting approved for a mortgage, here are a few tips to follow:

1. Gather Your Important Documents

Make sure you have easy access to several months (and in some cases, years) of important documents like pay stubs, bank statements, W-2s and/or 1099s, and tax returns. These documents help lenders assess your financial situation.

If you receive a large deposit which is more than half of your monthly income, document its source and purpose. Transparency is key to making sure your application is processed easily and accurately.

2. Avoid Switching Jobs

Try to stay at your current job when you apply for a mortgage. Lenders typically look at your job history for borrowers with stable and reliable employment. If you frequently change jobs when applying, this may raise concerns about your ability to repay the loan.

3. Stay on Top of Bills

Whether it's your car loan, credit card, utility bills, or student loans, make sure you're paying on time. This keeps your credit score in check and can boost your chances of getting approved for a mortgage. If you’re late on paying your bills, this can cause your credit score to drop and could negatively impact your mortgage application.

4. Be Cautious with Large Purchases

Try to hold off on making large purchases or taking on new debt before closing on your mortgage. If you do need to make a large purchase—like a car or furniture—talk with your mortgage advisor first.

This can affect your loan approval by changing your debt-to-income ratio or reducing your available funds for the down payment and closing costs.

5. Don’t be Afraid to Ask Questions

Applying for a mortgage can seem like a complicated process. Don't hesitate to reach out to a trusted advisor who can offer personalized advice tailored to your specific needs and circumstances. Their guidance can help you secure the best terms for your budget and ensure you’ll have a place to call home in no time!

Even if this is your first time purchasing a home or you’re just looking to refinance, with these tips, you can make sure your application process goes smoothly. Plus, with the help of your trusted mortgage advisor, you'll have the necessary support to navigate the remaining stages of your mortgage journey. Here's to finding your home sweet home!