Getting a new mortgage for a can be a little overwhelming with all of the details, guidelines and potential speed bumps. Since there are so many rules and steps to follow, here is a simple list of Homebuyer Do’s and Don’ts to keep in mind throughout the mortgage process. This is a big list intended to raise questions and cover many situations. Most importantly let us be your guide to get you smoothly to your new home closing!!
Homebuyer Do's!!
Homebuyer DON’Ts!
Basically, while you are in the process of getting a new mortgage, keep your financial status as stable as possible until the loan is closed and funded.
Any number of minor changes could easily raise a red flag or cause a negative impact on a credit score that may result in a denied loan.
Most importantly, check with us on even the simplest questions to make sure your loan approval is successful.
- Continue working at your current
job - Stay current on all your credit
accounts - Keep making your house or rent
payments - Keep your insurance payments
current - Continue to maintain your credit as usual
- Call us if you have any questions.
We are here to make this smooth for
you!!
Homebuyer DON’Ts!
- Make any major purchases (Car, Boat, Jet Ski, Home
Theater…) - Allow any new credit inquiries on your credit report
- Open new credit cards, or request credit line increases
- Transfer any balances from one credit or bank acct to another
- Pay off any charge-off accts or collections
- Take out any new loans
- Close any credit cards
- Max out your credit cards
- Consolidate credit debt
- Make unusual deposits without talking to your lender first
Basically, while you are in the process of getting a new mortgage, keep your financial status as stable as possible until the loan is closed and funded.
Any number of minor changes could easily raise a red flag or cause a negative impact on a credit score that may result in a denied loan.
Most importantly, check with us on even the simplest questions to make sure your loan approval is successful.
Check out the Items Needed for Loan Approval
This list of typical loan documentation may be helpful.
This list of typical loan documentation may be helpful.
Don’t get snagged by an unusual Deposit!
Any deposits other than
auto-deposited payroll may require additional documentation. In general you
should plan on all of your bank accounts being “under the microscope” for
mortgage underwriting until the loan has closed. So if there are going to be
any unusual deposits or transfers please contact your lender first to be sure
you have the correct papertrail needed.
New credit Inquiries can mean closing problems!
The lender may pull a new credit report 0 - 3 days prior to the closing date. Any new inquiries, new debts or discrepancies may cause last minute problems or delays.
** The lender will also verbally verify that you are still employed right before closing.**
Any deposits other than
auto-deposited payroll may require additional documentation. In general you
should plan on all of your bank accounts being “under the microscope” for
mortgage underwriting until the loan has closed. So if there are going to be
any unusual deposits or transfers please contact your lender first to be sure
you have the correct papertrail needed.
New credit Inquiries can mean closing problems!
The lender may pull a new credit report 0 - 3 days prior to the closing date. Any new inquiries, new debts or discrepancies may cause last minute problems or delays.
** The lender will also verbally verify that you are still employed right before closing.**
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