House hunting can be stressful. Especially when you’re looking for the home of your dreams and want to stay within your budget. If you’re applying for a mortgage, you have the added task of assessing your current financial state so you know how much you can be approved to borrow. Here are five important tips to get your finances organized and ready for your home loan application.

Stability is Key 

Your loan officer will likely want to see that you have stable finances and consistent job history. Showing that you have been able to keep a steady position at the same company is evidence that you’re reliable and will likely have the consistent income to make your monthly payments.  

Keep Your Finances in Order 

Many lenders will also want to see your bank statements. If they see anything irregular, like large deposits or withdrawals, it could be a red flag you may need to explain. Transactions like these could ultimately affect your likelihood for approval. If your large withdrawals and deposits make sense, then it’s unlikely to have an affect. For instance, if you’re getting help with a down payment for your home, resulting in a large deposit, then that should be okay. 

Focus on Minimizing Your Debt 

In addition to reviewing your credit score, lenders will likely need to assess the debt you’ve already accumulated. Many debts, like auto loans and student loans, can actually help if you’ve been making your payments on time. However, debts like high utilization of credit cards or large credit card debts could make it harder to get approval on your mortgage. It’s wise to pay down any unnecessary debt before you apply and try to keep your credit utilization low. Proper credit management can be an excellent indication of reliability for lenders.

Be Honest from the Start 

If you already know that something exists on your record that could make the approval process challenging, just be honest and upfront about it. Many people have made mistakes in the past, but they will come to light at some point in the application process one way or another. Get ahead of it and start by being honest. Then you can have a candid conversation with your loan officer and make an appropriate path for your mortgage application.  It may mean waiting a bit longer to apply, accepting a higher rate, or reassessing your budget, but at least you’ll know right away what your journey looks like.

Be Organized 

Above all else, organization is key! Lenders are likely going to need to see a lot of paperwork and documents, so get them ready. If you are scrambling to find the items they need, it could put a hold on the process. So get a list of the documents your lender needs and use it as a check list. Get everything ready to go in one folder so you know your application can process smoothly.


Whether you’re starting your path towards homeownership, considering an upgrade or downsizing the home you already own, or want to refinance the home you love, we’re here to help. You can learn more or apply online by visiting our website, or give us a call and at 800-422-5852 and a Member Specialist can help you get in touch with our team of mortgage professionals.