Mortgage Process FAQs Part 2; What Every Buyer Needs to Know in Today’s Marketplace

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As anyone in the Las Vegas area will tell you, I’ve been doing this for longer than most people can remember. And time and again, the most frequently asked questions have to do with mortgages and financing. So today, I met with Linda Bertuzzi of Nova Home Loans at 702-596-9565, a long-time partner and friend of the Mitch Schwartz real estate team and we share with you a three-part series with the answers to your questions.

One of the hardest things to see as a real estate agent is when we’ve helped someone sift through countless homes, find the perfect dream home and then lose the home because they were not prepared. In today’s mortgage FAQs, we cover what you can do to make sure all your ducks are in a row so you can GET the home of your dreams!

While in process of getting my loan, may I make any other new purchases?
The answer is no. Getting a home loan entails a long process that takes into consideration every little aspect of your financial makeup. It highly depends on your debt-to-income ratio, your spending patters and of course your ability to pay the loan. Though you can make cash purchases or investments with funds you do not plan to use for your down payment or other closing expenses, it’s important to stay in touch with your lender so they know what to expect. Some of the things to avoid are maxing out credit cards, making large purchases and opening new lines of credit.

Do I have to worry about my credit being checked after the first time?
The answer is yes. Though your lender will pull your credit initially to evaluate your creditworthiness as far as your loan goes, lenders are required to keep checking throughout the loan process. Due to a loan quality initiative, banks are required to monitor your credit until the loan closes, making sure you are not pulling more debt with your existing credit lines. Keep in mind, if your credit score dips in the process, you could easily lose the house and wait until you have rebuilt your credit.

How long does it take to get a loan?
The typical time it takes for a loan to be processed is anywhere from 45 to 60 days. However, these are loan applications that have been completed to the maximum capability of the buyer. All requested documents are submitted prior to the loan application process begins; tax returns, bank statements, income statements and verifications – all need to be submitted in entirety.

What’s the most important thing to know about getting a home loan?
The single most important thing buyers should know, especially in a world where information is easily available online, is to educate yourself on the process. Find out what to expect and know in advance the items you will need to present to your loan officer. Any shortfalls in this regard will likely cause hiccups in your buying a home.

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Are you in the market to buy a new home? Ideally the loan process should be started about 30 days prior to writing any offers. Contact us today for more information on what you need, we’ll put you in touch with our favorite lenders and get the ball rolling!