Do’s and Don’ts when applying for a mortgage.

 

Saving Mortgage

 

DO:

  • Keep originals or be able to access on your employer/bank sites 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. Please talk to your loan officer or loan coordinator for additional clarification. This will present a very difficult problem if not managed properly in the beginning.
  • Provide all documentation for the sale of your current home, including sales contract, closing statement, employer relocation/buy-out program if applicable.
  • Notify your Loan Consultant 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 Consultant of any employment changes such as recent raise, promotion, transfer, change of pay status, for example, salary to commission.
  • Be aware that a new credit report could be pulled just prior to closing.

DO NOT:

  • Close or open any asset accounts or transfer funds between accounts without asking your Loan Consultant about the proper documentation required for your loan. For example, before transferring all funds from your savings to your checking, check with your Loan Consultant.
  • Deposit any monies outside of your automated payroll deposits, particularly cash or sale of personal property, without notifying your Loan Consultant. Many guidelines require substantial documentation as to the source of these deposits.
  • Change jobs/employer without inquiring about the impact this change might have on your loan.
  • Make major purchases prior or during to closing such as new car, furniture, appliances, etc. as this may impact your qualifying amount.
  • 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 amount.

I am not a mortgage lender but I work very closely with some great ones and if you want more information let me know they would be happy to assist with any questions or in the process.

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