Do & Don’t During The Mortgage Loan Process

    Credit, income and asset situation is critical to maintain during the loan process. In order to make sure that during the loan processing your credit and qualification information does not change and affect your ability to be approved, be sure to follow these Do’s and Don’ts below. This information is important from the day you apply until the day your loan closes and funds. Our goal is YOUR successful closing!

    DO’s & DON’Ts During The Mortgage Loan Process

    DO’s

    • Do…stay current on all existing credit accounts— make those payments ON TIME!
    • Do…continue using existing credit as normal—but without large purchases
    • Do…provide all documents requested up front and keep all original paystubs, bank statements, tax returns and other financial documentation handy as you receive it. You may be required to update your loan file during the process
    • Do…notify us if you are planning on receiving any gift funds for the down payment or closing costs
    • Do…notify us if you have financial expenditures coming up during our loan process that will lower your assets
    • Do…notify us if you have any upcoming employment changes, raises, promotions, change in pay structure, etc.
    • Do…respond promptly to all requests to provide documentation, sign documents, answer questions
    • Do…notify us if you are going on vacation at any time during the process
    • Do…be flexible and make yourself available for your home inspection and your closing appointment

    DON’Ts

    • Don’t…apply for any new credit, open any new credit accounts or close any current ones
    • Don’t…make any large purchases on your credit accounts or increase your spending on current credit accounts—business as usual when it comes to credit
    • Don’t…co-sign for anyone else for a home or car loan or any other type of debt
    • Don’t…dispute any credit accounts on your credit report before or during the loan process—disputed accounts can alter your credit score
    • Don’t…pay off any collections or charge-off’s on your credit report unless advised by a credit professional or your mortgage consultant— activating these accounts by taking action may alter your credit score.
    • Don’t…make any type of employment or compensation changes without notification to your mortgage consultant
    • Don’t…close any current bank accounts, open new bank accounts, or move money around between accounts
    • Don’t…deposit cash to your bank account without contacting your mortgage consultant to discuss the requirements of documentation and whether or not it will be accepted as funds for closing.

     

    Have questions about the home buying process? Contact us and we’ll be happy to help you further.

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