Call Your Lender
The fifth common mistake that most home buyers make is not staying in touch with their lenders. Although your agent should remind you about contract deadlines related to your financing contingency, it’s your responsibility to make sure that your lender has all the information they need in order to process your loan.
Here are a few things your lender may need:
- credit report
- tax returns
- W-2 or 1099 forms
- intent to proceed
- application or appraisal fee
- bank statements
- verification of funds’ source
- copy of earnest money check
- employment verification
Most home buyers know that many of these items are collected during the pre-approval process. However, many home buyers don’t know or simply forget that there are several more steps required in order to complete their loan application, appraise the home, and obtain loan approval.
In addition to speaking with your lender about processing the loan, you should ask for advice regarding any changes to your income, debt, or credit score.
If you change or lose your job, finance a large purchase like furniture or a car, or otherwise negatively impact your credit score during the loan underwriting process, you may not receive approval for your loan. And without your loan, you won’t be able to buy your dream home (unless you have the cash)!
Calling your lender regularly is the best way to avoid delays or problems with the financing of your home purchase.
And it doesn’t hurt to have an agent on your side to make sure you’re on the right track!