If you’re new to the mortgage process, it can feel overwhelming at first, but it doesn’t have to be stressful. Between a little preparation and knowing what to expect, it can be a smooth process. Here’s what you can do to minimize stress when buying a home.
1. Opt Out of Trigger Leads
One of the first steps you should take before applying for a mortgage is to opt out of trigger leads. These are automatic responses or follow-ups that happen when a specific action occurs.
When you apply for a loan, credit bureaus often sell your information to lenders, leading to a flood of unsolicited calls and offers.
To avoid this, visit optoutprescreen.com or call 1-888-5-OPT-OUT to stop your information from being shared. Opting out is free and takes just a few minutes. You’ll thank yourself later when your phone isn’t ringing off the hook with offers from companies you didn’t ask to hear from.
2. Avoid Major Financial Changes
Consistency is key during the mortgage process and lenders need a clear picture of your financial situation. With that being said, big changes—like getting a new job or buying a car—can raise red flags and possibly delay your loan approval.
If you’re in a situation where you must make a significant change—like replacing a car after an accident—it’s important to talk to your loan officer first.
They can help you understand how it might affect your loan and guide you on how to proceed without jeopardizing your approval. When in doubt, it’s best to wait until “after” closing to make any big financial moves.
3. Learn About the Process (And Ask Questions!)
Understanding exactly how the mortgage process works is also key to a much less intimidating experience. So don’t be afraid to ask questions about each phase.
For example, you’ll first submit your loan application and provide your financial information to the lender. After that, a loan processor will review your application to ensure all details are accurate and complete.
Following this, your loan goes through underwriting, which involves a closer evaluation to confirm you meet the loan program’s requirements. Your underwriter might request additional documentation or clarification at some point during the process, but don’t panic. This is common and it’s important to provide this information as soon as possible to avoid delays.
You’ll next receive an approval or a conditional approval—meaning you’ll need to address certain requirements before moving forward.
For example, sometimes an underwriter will ask a borrower to address issues on their credit report before closing to meet the requirements for approval. This could involve resolving errors or explaining any unusual activity.
Once you’ve met certain conditions, the underwriter gives the green light to close, at which point you’ll schedule a meeting with a title company or real estate attorney to sign the loan documents.
Takeaway
Preparation and communication are your best tools for turning a potentially stressful situation into a manageable one. Your loan officer is there to guide you, so don’t hesitate to lean on them for support. For more information on the mortgage process and to explore options, contact the loan experts at FirstBank Mortgage.
