Purchasing a home is a major life decision. Your home is where you’ll plant your roots and make memories that last a lifetime. To get you started, we’ve put together a list of Dos and Don’ts to guide you through the mortgage application process.
Let’s start with the DO’s:
- Keep Originals or be able able to access on your employer/bank websites all pay stubs, bank statements, and other important financial documents
- Provide your Earnest Money Deposit from your own personal bank account or acceptable gift funds.
- Talk to your Loan Officer or Loan Coordinator for additional clarification. This will present a very difficult problem if not properly managed.
- Provide all documentation for the sale of your current home. This includes sales contract, closing statements, and employer relocation/buy-out program, if applicable.
- Notify your Loan Office or Loan Coordinator 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.
- Notify your Loan Office or Loan Coordinator of any employment changes such as a recent raise, promotion, transfer, or change of pay status (ex. salary to commission)
- Be aware that a new credit report can be pulled just prior to closing.
The DO NOT’s:
- Do not close or open any asset accounts or transfer funds between accounts without talking with 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 deposit any monies outside of your automated payroll deposits. Particularly cash or sale of personal property, without notifying your Loan Officer or Loan Coordinator.
- Ps. Many guidelines require substantial documentation as to the source of these deposits.
- Do not change jobs/employers without inquiring about the impact this change might have on your loan.
- Do not make major purchases prior to or during your contract such as a new car, furniture, appliances, etc. as they might impact your loan qualification.
- Do not open or increase any liabilities, including credit cards, student loans, or other lines of credit during the loan processes it may impact your qualifying loan amount.
A lot goes into every mortgage application and we want to make sure that you are ready for anything. If you have questions about any of the Dos and Don’ts on the list, don’t hesitate to ask. As the old adage goes, there is no such thing as a stupid question. You should be as informed as you possibly can be before that big day. If you have anything arise during the mortgage process that affects any of the areas we have addressed above, be sure to communicate these changes with your lender to understand how it may affect your loan qualification.
