Ready to turn your dreams of homeownership into reality? Then it’s time to take the first step by qualifying for a mortgage.

Whether you’re a first-time buyer or a seasoned homeowner looking for your next home, understanding these mortgage do’s and don’ts will boost your confidence and increase your chances of qualifying for a mortgage and snagging those favorable terms you’ve been dreaming of.

Do Get Pre-Approved Now

In addition to clarifying your budget, pre-approval allows you to lock in potentially favorable interest rates early. Early pre-approval also gives you more negotiating power.

In a competitive market, pre-approved buyers are preferred over those who haven't undergone this step. In short, pre-approval can mean the difference between having your offer accepted or rejected.

Don’t Accrue Additional Debt

It's also essential to avoid unnecessary credit card purchases while applying for a mortgage. Here's why: debt impacts your debt-to-income ratio (DTI). And when you accrue more debt, your DTI ratio goes up, which could push you beyond the acceptable lending limits.

Do Save for a Down Payment

The amount you need for a down payment can vary based on the property's price, the type of mortgage you're applying for, and the lender's specific requirements. Conventional lenders generally require a 10 percent down payment while government-backed loans like FHA loans often require a lower down payment, usually around 3.5 percent.

Don’t Switch Jobs

Avoid switching jobs while you are in the middle of applying for a mortgage. Why? Changing jobs can complicate the documentation process, delay your application, raise your debt-to-income ratio evaluation, and, ultimately, negatively impact your chances of approval.

Do Pay Your Bills on Time

Making sure you pay your credit card bills, utility fees, loan installments, and other regular expenses on time is incredibly important. Why? Well, consistently paying your bills on schedule demonstrates your ability to handle financial responsibilities effectively. What's more, it has a direct impact on your credit score; a tool lenders use to evaluate how risky it might be to lend you money.

Don’t Drastically Alter Your Financial Situation

Before applying for a mortgage, it's wise to avoid making significant or sudden changes to your financial situation, such as selling off assets or making large withdrawals. These abrupt shifts can raise concerns with lenders, as they might question your stability and ability to manage mortgage payments.

JustChoice Lending: Your Mortgage Solution

JustChoice Lending (JCL) is a socially responsible mortgage lender providing competitive rates and personalized service. We assist clients of all income levels, including those from lower-income backgrounds, achieve their homeownership goals by improving their credit scores. Contact us today to speak with one of our mortgage experts!