9 Dos and Don’ts For Avoiding Common Mortgage Mistakes

The mortgage process can be confusing with multiple twists and turns to navigate. But it doesn’t need to be intimidating. With a Sunflower Bank Mortgage professional on your team, you will have an advocate helping guide you every step of the way.

Whether you are just starting to think about buying a new home or actively searching, we are here to help with your home buying journey. A member of our mortgage team in Texas recently shared her list of the top Dos and Don’ts for avoiding common mortgage mistakes.

These tips will save you time, stress, and potential heartache as you go through the home buying process.

What You Can Do to Avoid Common Mortgage Mistakes

DO: Have your finances in order

Make sure your documentation is thorough, accurate and complete to give your loan team everything they need to serve you. Paperwork varies based on your mortgage lender, but typically includes:

• Loan application
• Financial verification documents: W2, pay stubs, tax returns, alimony, or child support documents
• Assets and debts documentation: bank statements, investment accounts, credit report

DO: Respond as quickly as possible

Try to be as responsive as possible when working with your loan team. If you can respond within 24 hours, your team will be better able to keep moving forward and get your loan closed in a timely fashion. The longer you wait to respond, the more time your team spends waiting to work!

DO: Maintain your current employment throughout the loan process.

If you’re looking to make a career change, wait to move on to your next gig until after your loan has closed. Your employment, and the income it brings, play a large role in the mortgage process. Changes in your employment, especially during loan approval and closing can impact your loan’s closing timeline and even your ability to close. Of course, keeping your current employment throughout the loan process is not always in your control. Notify your loan team of any changes to your employment promptly.

DO: Ask questions

This is perhaps the most important advice of all! Throughout the process, your loan originator will do his or her best to make everything clear. Our goal is to ensure you feel 100 percent comfortable with your loan and fully informed about the process. However, if anything is not clear do not hesitate to ask your team questions. We’re here to help.

What Not to Do What Trying to Avoid Common Mortgage Mistakes

DON'T: Wait until you find the perfect house to apply

Apply for pre-qualification when you know you’re ready to start looking, instead of when you’re “finished” looking. You’ll be better positioned with the seller and avoid potential heartbreak when you are preapproved for the type/price of home you are looking for. If you don’t go through the preapproval process, you’ll be behind and may miss out on that house you fell in love with.

DON'T: Submit incomplete documents or photos of documents

Time is of the essence in the current housing market. Don’t let incomplete documents slow your loan process down. Take time to ensure everything is in order before sending your documents to your loan originator. Likewise, make sure you’re giving your loan originator the forms of documents they need to complete the process. For example, photos of documents are typically unusable.

DON'T: Make large cash deposits or give any large gifts without first talking to your loan originator. 

Your loan team needs a paper trail of all transactions to show why your bank accounts are fluctuating. Their goal is to ensure your income is coming from legitimate sources and that you’ll be able to pay off your mortgage debts. So, a large change in your finances, either plus or minus, could throw a red flag. 

DON'T: Apply for other forms of credit before, during or shortly after your loan process.

Multiple credit inquiries in the same time period could harm your credit score and cost you money. If you can avoid double-dipping on mortgage and credit card inquiries, you’ll potentially save thousands of dollars.

DON'T: Pay attention to marketing calls offering mortgage “deals.” 

An unfortunate reality of running your credit score is that it triggers a barrage of calls from companies looking to sell you a mortgage or worse, steal your information. Don’t let these calls shake you. Know they will come and know to ignore them.

While some of the details behind our team's advice is specific to them, the general principles remain wise practices for those seeking a loan. 

For more information on the mortgage application process, contact a Sunflower Bank Mortgage professional today.