Buying a home is a huge step. Your mortgage will likely be the largest loan of your life, so it’s good to be prepared before filling out your application. Here are a few things you can do to make the process as smooth and straightforward as possible.
Prepare Your Documents
Before filling out the mortgage application, you’ll need to have a few financial and personal documents in hand. These include:

Your ID

Proof of stable employment and tax returns (recent pay stubs and the last two years’ W-2 or 1099 forms)

Other income sources or expenditures (pension, child support, Social Security, etc.)

Bank statements

Stocks and investments

Debts

These documents will give you and your lender a better understanding of your budget and its limitations. Additionally, they can help you obtain a pre-approval.
Additionally, you’ll want to make sure your credit score is in good standing. Every loan program is different, but most require a minimum&nbs ...

There’s no denying the homebuying process is exciting. Sure, it can be stressful, and it might make you anxious at times, but the thought of starting over with a clean slate in a new location is enough to make anyone thrilled for their future. Imagining all the new furniture that will fill the home and put a smile on the face of every family member.
Maybe it’s a movie-theater-style reclining leather couch or a smart refrigerator with a touchscreen exterior that’s caught your eye. Either way, that’s a fun, and big, transaction. One that could be too big if your loan hasn’t closed yet.
Just like buying anything on credit before your loan hits the closing table, it’s harmful to your loan if you finance new furniture before completing the final step in the mortgage process. In fact, there are a few different reasons why financing furniture early is detrimental to your loan.
It Changes Your Credit
Occasionally, credit scores are reverified by th ...

You probably know that a credit report is a detailed history of your debt management and the status of your credit accounts. But have you ever looked at your credit report? You should! Monitoring its data will help you ensure your credit history is correct, achieve the highest credit score possible (and therefore the best interest rate!), and stay safe from identity theft.
You actually have three credit reports, one from each major credit bureau: Equifax, Experian, and TransUnion. Credit bureaus (also called credit-reporting agencies) compile pieces of your financial background like accounts and payment history, as well as public records such as bankruptcies and tax liens. They sell that information to lenders and others who use it to determine whether to give you a loan, lease, job, or other financial product.


Expert Tip


Credit bureaus do not make any lending decisions. They only gather your financial information.







You may notice that some details in your ...

Let’s face it, life doesn’t always go our way. Whether it’s an unexpected job loss, a medical emergency, or simply mismanagement of debt, financial consequences like collections, bankruptcy, and liens can seriously impact your credit and delay your getting a mortgage. But there is hope for getting past them. Here’s a closer look at these obstacles:
Collections
Most lenders will try to collect debts like mortgages, student loans, or credit cards up until 120-180 days late. Then they will write off the debt and send it to a third-party person or agency to collect it, and that’s when it hits your credit report. The longer a payment is past due, the more it can hurt your credit score. With serious delinquencies, you have three options:



If the information is inaccurate, you can file a dispute.


Wait seven years from the original delinquency date (the date the debt has gone past 120-180 days) for the information to drop off your credit report.
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Crashing credit, buying boats, co-signing for Cousin Eddie... Few mistakes are more cringe-worthy to a lender than when a client, well on their way to getting a mortgage, makes an impulsive decision that derails their loan approval. Here are ten “don’ts” for you to remember as you wait on those beautiful words: “clear to close.”
The Ten Top “Don’ts”

1. Don’t change or quit jobs or become self-employed. Lenders require steady employment and income consistency. Change jobs after you change mailing addresses.

2. Don’t buy a car (or boat, or RV, or four-wheeler…). Unless you want to be living in it, don’t purchase a vehicle while buying a home.

3. Don’t purchase any big-ticket items. Similar to vehicles, wait until after you own the home to buy that furniture or fancy sound system.

4. Don’t use credit cards or be late on any payments. This double-whammy hurts you both w ...