Many want to do as little as possible to achieve a goal properly. That said, applying for a new mortgage or refinancing can have some roadblocks that the Toenjes Home Loan Team wants to help you avoid.
Like our Ten Yes’ of Home Loans post, our detailed list of the ten most common mistakes we see may help you avoid pitfalls that could slow the mortgage process down and keep you from achieving your dream home.
Getting pre-approved for a mortgage is essential before you start looking at houses. This way, you avoid falling in love with a home out of your budget.
Remember, you don’t have to navigate the homebuying process alone. Real estate agents, loan officers, and other professionals are there to provide valuable guidance, support, and expertise, making the process much smoother and less daunting.
Under the Fair Credit Reporting Act (FCRA), a federal law designed to protect your rights as a consumer, you are entitled to a free credit report from each of the three major credit bureaus-Equifax®, Experian™, and TransUnion®-once every 12 months. You can obtain your report by visiting AnnualCreditReport.com, calling (877) 322-8228, or mailing the Annual Credit Report Request Form to the Annual Credit Report Request Service. Reviewing your credit report helps you understand your credit standing and spot any errors that need correction.
Changing your credit lines can affect your credit score and loan approval. Always discuss with your loan officer before opening or closing credit accounts during homebuying.
Keep in mind that timely communication is critical. Responding promptly to requests from your loan team is not just a courtesy; it’s a crucial step that helps prevent delays in your loan approval process and ensures a smooth and timely closing of your new home.
Major purchases can alter your debt-to-income ratio and affect your loan approval.
Job stability is essential when applying for a mortgage. Changing or quitting jobs can jeopardize your loan approval, so consult your loan officer before making any employment changes.
Small deposits can raise red flags during the mortgage approval process. Ensure all significant deposits are documented and easily traceable to avoid complications with your loan application.
The loan process often requires detailed documentation to verify your financial status. Be prepared to provide additional paperwork as requested, ensuring all documents are accurate and up-to-date.
Transferring money between accounts without documentation can complicate your loan approval. Maintain precise records and consult with your loan officer to document all movements properly.
Open communication with your loan officer is essential. Don’t hesitate to discuss any concerns or questions you have. They are there to help you navigate the process confidently.
The Toenjes Home Loan Team is committed to quickly helping you get into your dream home. Call us if you have any questions or concerns about your ability to qualify for a mortgage loan, and we will get on it right away.
Justin Toenjes (ten-yes) is a highly accomplished finance professional with a strong background in mortgage banking and a passion for helping individuals achieve their financial goals.
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LO Licensing: Justin Toenjes, AZ LO-0912116 CA-DFPI167048 CO-100032832 FL-LO118111 ID-MLO-2080167048 NV-68467 TX NMLS-167048
Peoples Mortgage – 2055 E Centennial Cir, Tempe, AZ. 85284
LO Licensing: Kathi Alosi, AZ LO-0914249 NMLS-259189
Peoples Mortgage – 11201 N Tatum Blvd, Suite 140, Phoenix, AZ 85028
Company Licensing: Peoples Mortgage Company, A DBA of Moria Development, Inc. AZ 0904164 California – RMLA4130661, Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act : www.peoplesmortgage.com/privacy-policy CO, Regulated by the Division of Real Estate FL-MLD1223 ID – MBL-2080006274 NV-4200 TX peoplesmortgage.com/license NMLS-6274
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