While it’s normal to feel a little overwhelmed by the homebuying process, there are a few smart habits that can help make your experience smoother, faster and much less stressful. Whether you’re a first-time buyer or just need a refresher, here are five simple (but important!) things you can do to stay on track and avoid common roadblocks when financing your new home:
Use Your Legal Name, Always
When applying for a mortgage, it’s important to remember that consistency is key. Always use your full legal name as it appears on your government-issued ID on all your documents, including your loan application, title paperwork and insurance documents. Using nicknames or abbreviated versions of your name can cause delays and may require extra verification requests from your lender or title team.
Tips:
- Make sure your government-issued ID is valid and not expired.
- If you’re getting married during the homebuying process, it may be best to wait until after closing to change your name. Otherwise, be prepared to provide an updated ID and a marriage certificate showing the legal change.
Think Twice Before You “Buy Now, Pay Later”
Programs that allow you to purchase items now, while continuing to make payments, like Affirm, Afterpay, Klarna, Apple Pay Later, Cashapp Sezzle, Splitit & Uplift (just to name a few) fall within the category of open loans. These “Buy Now, Pay Later” apps may seem like no big deal, but to your lender, these are considered loans and can affect your debt-to-income ratio (DTI).
Hold Off on Big Purchases
We get it, you’re dreaming about furnishing your new space, but making a large purchase during the loan process (like furniture, large appliances or cars) can impact your debt and credit score, which may delay your home closing. It is recommended to wait until after closing to do any of the following. (Your future self will thank you!)
- Opening a new line of credit.
- Financing furniture or large appliances.
- Making large withdrawals or unexplained transfers.
Keep Your Funds Safe
When it’s time to transfer funds for your home closing, your title team will send you wiring instructions. Keep in mind, wire fraud is on the rise and scammers often target homebuyers with fake emails or texts that may appear legitimate. Please keep these safety tips in mind when leading up to your closing.
- Always confirm your wiring instructions by calling your closing team using a verified phone number.
- Never trust any last-minute changes to wiring instructions over email or text.
- Your closing team will never ask you to send funds via ACH (Automated Clearing House).
- If something feels off, pause and double-check. Your closing team is there to help!
Communicate Often with Your Loan Team
Throughout your homebuying journey, you’ll be hearing regularly from your Loan Consultant and Loan Processor as they work behind the scenes to keep your mortgage moving forward! To help keep everything running smoothly, be sure to save their contact information in your phone and be ready to respond quickly to calls, emails or document requests.
If something in your life changes, such as a change with your job or anything financial, let your loan team know right away. The more proactive you are, the easier it will be to keep your closing on track.
Bonus Tip: Don’t Forget to Ask Questions!
There is no such thing as a silly question, especially when you’re buying something as important as a home. If you’re ever unsure about a document or confused on what the next steps are, don’t hesitate to reach out. Your loan team is your guide through the financing process, so don’t be afraid to lean on them!
Have questions or need help getting started? Visit our website to learn more about the Pulte Mortgage process!
