Top Dos And Don'ts Of The Loan Process

Dos and Don'ts of the Loan Process isn't a long list, but it's an important one. Credit score? Points? Tax returns? Interest rates? Inspection? Insurance?

You get the idea; there are plenty of questions. The Mortgage Loan Process is anything but simple. But now you have an advantage: you're reading this!

You want to buy a home, and like many other American families (after all, very few of us have enough cash to buy a house outright), you're going to need a Home Loan to do that.

Many first-time buyers are confused by the myriad of paperwork, documentation, and the number of needed signatures involved in the loan process. Still, if you do your homework, you'll know how the process works, the things you need to do, and the pitfalls you can and must avoid.

Now comes the tricky part. Jumping through those hoops put in place by the different players in the Home Buying Industry. Including, but not limited to:

• Money for a down payment
• Pre-approval
• Proof of identity
• Loan application
• Credit score
• Financial records
• Current financial obligations
• Proof of income
• Tax returns
• Home inspection
• Proof of insurance

But things can be simplified when you use Loan Processing Services. What's that? Read on.

Dos And Don'ts Of The Loan Process? First, Don't Do This.

Let's get this easy part of the process out of the way first. When looking for a home, never, ever do any of the following:

• Don't try to go looking for a home without pre-approval – your real estate agent should caution you against this, as it only makes everyone's job more difficult.
• Before house hunting, don't make a significant purchase – lenders carefully look over financial commitments before considering a loan. Don't go out and buy a new car or major appliance that you have to finance.
• Don't get a new credit card or close an old one – it sounds counterintuitive, but even closing a credit card will negatively affect your credit score. Don't do that! And opening up a new account is a no-no as well.
• Don't change jobs – lenders highly prize steady, dependable income, so stay in that old job that you may not like just until you've closed the deal on a new home. Only when all the papers are signed should you change employment.
• Don't change banks or bank accounts – lenders prize consistency. Steady is not boring in this mortgage lending world, so keep everything the way it is. Ignore the teaser bonuses and rates banks use to get you to switch.

Second, Do This Instead

This part might be a little more complex; it involves action on your part. But it's not impossible, and you'll reap the reward later on.

Stay current on your bills – this is vital! Sure, you're saving money for the down payment, but pay the bills! And make more than the minimum payment on those credit cards.

Don't overdraw your checking account – know your balance and avoid overdraft fees. Not doing this sends a negative message about you.

Keep all of the documents mentioned above organized and available. You never know when you might need to produce proof of income or debt.

Don't stop spending – sure, you might want to save a little more each month, but don't shut down. Lenders don't like radical financial moves from borrowers.

Make a savings plan – if you haven't already, start saving money. Even a little bit each month adds up. And it sends a message to lenders that you're serious about buying.

Stay in contact with your lender – don't let yourself slip through the cracks. Your loan consultant is busy and has a lot of other people they're working with. Stay on top of this.

Dos And Don'ts Of The Loan Process? Are You Ready? Rely Services Is.

Ensure your customers have all these Dos and Don'ts; it will make your life easier when offering them a loan. And speaking of making life easier, why don't you talk to Rely Services about outsourcing your loan processing? Outsourcing the loan process allows you to increase your productivity because you let Rely Services process it instead of doing your processing. Then you can concentrate on making that next sale. The time you save could turn into high income. Think about it. Then contact Rely Services. Today.