Helpful Do’s and Don’ts when Applying for a Mortgage
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 our helpful mortgage do’s and dont’s. This information is important from the day you apply until the day your loan closes and funds.
DO: Provide your Earnest Money Deposit from your own personal bank account or acceptable gift funds. Please talk to your loan officer for additional clarification.
DO: Keep all originals or be able to access on your employer/bank sites all pay-stubs, bank statements and other important financial documents. Click here for our document checklist.
DO: Provide all documentation for the sale of your current home, including sales contract, closing statement, employer relocation/buyout program if applicable.
DO: Notify your loan officer if you plan to receive gift funds for closing. Gift funds are acceptable only if certain criteria are met. Advances from credit cards for down payment/closing costs are never acceptable.
DO: Notify your loan officer of any employment changes such as recent raise, promotion, transfer, change of pay status, for example, salary to commission.
DO: Be aware that a new credit report could be pulled just prior to closing.
DO NOT ?
DO NOT: Close or open any asset accounts or transfer funds between accounts without talking to your loan officer about the proper documentation required for your loan. For example, before transferring all funds from your savings to your checking, check with your loan officer.
DO NOT: Make major purchases prior to or during your contract, such as a new car, furniture, appliances, etc. as this may impact your loan qualification.
DO NOT: Change jobs/employer without inquiring about the impact this change might have on your loan.
DO NOT: Deposit any monies outside of your automated payroll deposits, particularly cash or sale of personal property, without notifying your loan officer. Many guidelines require substantial documentation as to the source of these deposits.
DO NOT: Open or increase any liabilities, including credit cards, student loans or other lines of credit during the loan process as it may impact your qualifying loan. Click here to learn more about the importance of your credit.
Be sure to contact your loan officer immediately if there are any changes to your financial status or anything else you think we should know about. We are partners in this process, and the key to a successful closing is open and honest communication! Click here for more information about the mortgage process.