October 12, 2021 |Mortgages
I’d like to take a moment to share what you can expect throughout the home buying process. The most important thing to know is that we will work alongside you to make this experience as easy and stress free as it can be.
After you make initial contact with Texas Farm Credit, you’ll be put in touch with one of our Mortgage Loan Officers. Your loan officer will ask questions to learn more about you and your situation, evaluate your financial needs and what your rate and payments may look like, get you prequalified if necessary, help determine which loan program is right for you, and walk you through the entire mortgage application process.
Once you’re ready to apply, we’ll send you a link to an online application and a list of documents we’ll need. The application can be filled out on your computer or smart device. And, should you need assistance, your MLO will work through the application with you.
Once you submit your home mortgage application to Texas Farm Credit, we will then enter the documentation stage, which is the most critical portion of the mortgage approval. During this phase, we’ll ask you to submit the documents that were listed with your application. These may include W2s, tax returns, bank statements, and paycheck stubs. The sooner you send us these documents, the sooner we can get you to the closing table and into your new home!
To help you with the documentation phase, a loan processor from our team will be assigned to your account. They will keep you updated during the file review and let you know if and when additional documents are needed.
Meanwhile, your Mortgage Loan Officer will be working behind the scenes on your behalf to coordinate several additional components.
- A third-party appraiser will validate the home’s current market value to ensure the requested loan amount is sufficient.
- An underwriter will review your file to identify the right amount to borrow with a monthly payment that will be comfortable for you.
- And finally, the title company will be responsible for properly documenting your home purchase with the city or county and help you understand your responsibilities as a homeowner.
While our team is working on your loan package, here are some important things to avoid that could derail the loan progress:
- Please do not make any major purchases prior to closing on your new home. Draining your savings or buying new furnishings for the home on credit, could make a difference in your interest rates and whether you qualify for a mortgage. Avoid spending money until after the closing is completed, whether by credit or cash. During the process, your credit is monitored, and credit inquiries require explanation. So, don’t check your credit until after you close. Your patience will pay off!
- And please don’t quit your day job or make any radical life changes while your loan is in process. Lending institutions like to see steady employment and making any radical life changes while the loan is in process is a major red flag for an underwriter. Keep things consistent and predictable.
- Next, keep your credit clean and predictable throughout this entire process! Don’t apply for any new credit whatsoever, don’t cancel any of your credit cards, transfer any balances, switch bank accounts, move money around, or even pay off debt or make a large cash deposit. Once the application has been submitted, consistency is key, and all other changes could actually lower your credit score and potentially make the difference between your mortgage being approved or denied.
- And speaking of strong credit – remember to pay your bills on time and definitely don’t miss any payments. That includes rent, credit cards, vehicle payments, and the like. Again, be extremely diligent about keeping your financial records clean and consistent.
- Finally, and most importantly, please do not omit any information about your finances. Throughout the process you’ll be asked to document and prove to the underwriter almost everything you have incoming and outgoing, so omissions can lead to major roadblocks.
In short, before doing anything financially, talk to us first! Communicating transparently with your lender is one of the most important responsibilities you’ll have. And the second is to make sure you respond to your loan officer quickly and provide any documents requested in a timely manner to keep the process moving.
One last thing to note, unfortunately in today’s world there are people who will try to take advantage of your situation – always be on the lookout for email hackers and never wire money without first checking with your loan officer. A quick verification phone call could save you a major heartache.
The journey to owning a home requires discipline, foresight, and sometimes a little sacrifice. But we want you to know that you’ll never be alone as you go through this process. We’ll be right beside you each step of the way to answer your questions and keep everything on-track.
Thank you for entrusting Texas Farm Credit with the opportunity to serve you.