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Starting the journey towards homeownership can bring on a mixture of excitement, anticipation, and, sometimes, dread. With a few proactive steps, the mortgage loan process doesn’t have to be scary. The professional lending team at Putnam 1st Mercantile Bank in Cookeville, TN, specializes in helping customers get started on the application procedure to secure a home loan that fits their unique budgets and lifestyles.

Do’s & Don’ts of a Mortgage Loan

Do Build Savings

Some mortgage loan programs require the applicant to provide a down payment. Start putting away money for the expense as well as other expenditures such as closing costs. Keep in mind the down payment is typically a percentage of the loan’s total dollar amount.

Don’t Quit Your Job

Mortgage loan specialists look at an applicant’s current employment as a factor in the lending process. It shows your ability to make consistent monthly payments. The longer you’ve worked at the same company, preferably full time, the better it will look during the application process.

Do Seek Preapproval

mortgage loanThis important step should be done early on in the process. Preapproval provides the amount of the mortgage loan you can afford. The figure, which is typically based on your income and credit score, offers a threshold that prevents looking for houses outside of the preapproved range.

Don’t Toss Out Documents

Gather important documents often needed to apply for a mortgage loan. These include federal and state income tax returns, W-2s, bank statements, and employment payment stubs. With tax returns and W-2s, it’s helpful to have documentation going back at least three years.

Do Assess Your Credit

It’s also helpful to know your credit history. You can request a free credit report from the nation’s three largest bureaus, Equifax®, Experian®, and TransUnion®. The reports provide a track record of all your loans and outstanding balances. Now is the time to clean up any inaccurate information by contacting the bureaus.

Don’t Buy Extravagances

Avoid buying large purchases such as a new car or furniture or splurging on a vacation paid with a credit card. Banking officials review outstanding debt to make sure you won’t be overextended when applying for a mortgage loan.

Get started on the mortgage loan process today. Putnam 1st Mercantile Bank makes the home application process easy, seamless and fast. Call their loan services team at (931) 528-6372 to arrange a loan preapproval appointment. Visit the local bank’s website for information.

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