Mortgage Dos and Donts USA

by Maria John Senior Mortgage Executive

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

Keep originals or be 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. 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 and employer relocation/ buy-out program, if applicable.
Notify your Loan Officer 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 Officer or Loan Coordinator of any employment changes such as a recent raise, promotion, transfer, or change of pay status (for example, salary to commission).
Be aware that a new credit report DO could be pulled just prior to closing.

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.
Deposit any monies outside of your automated payroll deposits, particularly cash or sale of personal property, without notifying your Loan Officer or Loan Coordinator. Many guidelines require substantial documentation as to the source of these deposits.
Change jobs/ employer without inquiring about the impact this change might
Make major purchases prior to or during your contract, such as a new car, furniture, appliances, etc. as this may impact your loan qualification.
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 amount.

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 loan process.

Reference: https://medium.com/@semfairway/mortgage-dos-and-donts-usa-2ab424740e26