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Pre-Qualification Must-Know Items

Envoy Pre Approved WisconsinAs any experienced loan officer or real estate agent will tell you, there are certain must-knows that come along with buying a home and obtaining a mortgage. This is my most recent list of them to help keep your experience on the easy side of things. It’s organized in to Do’s and Don’ts

DO Let us know if there have been (or will be) any employment changes including raises, promotions, transfers, pay status, etc.

DON’T Transition out of your current job before first connecting with us about the implications this can have to your loan.

DO Keep in mind that a new (soft) credit report will be pulled prior to closing and, if your letter expires, a new full credit report will be pulled as well.

DO Let us know if you have opened any new credit in the past 90 days; sometimes the creditors don’t report them timely and we don’t want something you opened prior to now, pop-up on the soft pull note above.

DON’T Do not incur any new debt between now and closing unless you first pass it by us; any new liability can kill your loan.

DON’T Make any major purchases between now and closing without first consulting us; this includes, but isn’t limited to, items like a new car, furniture, appliances, etc. Purchases like this can significantly impact your ability to qualify for the amount you’d like.

DO Provide your Earnest Money Deposit to your seller from your own personal account or acceptable gift funds. If not well-managed, this can cause major issues later.

DON’T Deposit just anything into your bank account. Deposits into your bank account(s) that are not from payroll or transfers from another account you already own can derail your loan. Throughout the process, always remember that if you are making, plan to make, or have already made, deposits into your account(s) that are not direct-payroll-deposits or transfers from one of your current accounts to another, we need to talk to ensure it’s done in a way that is compliant with your loan program’s guidelines.

DON’T Make any decisions to close or open any asset accounts or transfer funds between accounts without first talking to us. This includes moving money from checking to savings.

DON’T Assume your rate is locked. The interest rate cannot be locked until a home has been identified and purchase contract has been secured; it can go up or down with the market until it is locked. With our premier standing as a national direct mortgage lender, I can assure you that when the time does come to lock, your rate will be both competitive to the market and very affordable. Beyond that, we have a Price Promise, which can be read here.  If you want to know what it means to lock a rate, click here. If you need suggestions on how to keep up with what the market is doing, please like our Facebook page or connect with me on Twitter or visit my Market Information area here on this website.

DO Send us the accepted offer as soon as you get it from your seller; without it, we cannot move to the formal application.

DO Familiarize yourself with the entire process of buying a home so as to know what to expect and when; you can read about that here in our full publication of the process from start to finish. While up to this point, if you’re reading on a phone, it’s been fine, this publication works best on a larger-than-a-phone screen. Check it out on a computer if you’re on a phone.

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