Do Not’s Inside of the Mortgage Process

When you’re ready to get a home loan, it can help to have as much information about the mortgage process as possible. That way you can take the right steps towards getting your loan, and hopefully avoid some of the more common pitfalls along the way. To help you reach your goal of homeownership, here’s a list of don’ts as you start with the process of obtaining a home loan.

If you have a unique scenario, come up and you must do one of the below actions, run it by your mortgage planner prior, to ensure we can plan accordingly:

1.       Do NOT open any new debt – Opening new debt will require the mortgage company to hold the new payment inside of your debt-to-income ratio and may disqualify you.

2.       Do NOT deposit any large amounts of cash inside of your bank account. -During the mortgage process, all transactions will need to be sourced. Cash is not a traceable item.  Any cash deposited into your account will not be eligible assets.

3.       Do NOT transfer money between different accounts without purpose. – In the mortgage world, everything needs to be sourced. So, if you transfer money from one account to another, that will require you to provide additional bank statements to show the transfers.

4.       Do NOT close an credit accounts- Closing an account could have a negative impact on your credit profile and may disqualify you from the loan.

5.       Do NOT be slow on documents request from the mortgage team. – On the inside, the mortgage process is very detailed and complex. In order for you mortgage team to have sufficient time to complete the loan before your closing date, it is important that you complete tasks in a timely manner.

6.       Do NOT make major employment changes. - Making an employment change can jeopardize the approval on your loan. (The closing department will do a Verbal Verification of Employment with your employer all the way until your close on your loan. Even if you are clear to close, you could still jeopardize the loan if you make major employment changes. Reach out to your mortgage planner if you must make a move before you do so.

7.       Do NOT co-sign a loan for anyone. - Even if you’re not the one making the payments on that loan, it increases your debt-to-income ratio and could cause you to no longer qualify.

8.       Do NOT forget that we are here to answer your questions and guide you to success.